Toyota has made a $500 million investment in an electric air taxi startup.

Toyota has invested $500 million in Joby Aviation, a California-based startup dedicated to developing electric air taxis, as stated in a recent blog post from Toyota. This new funding increases Toyota's total investment in the company to $894 million, following a previous investment of $394 million in 2020. The funding aims to assist Joby Aviation in completing the Type 2 certification process with the U.S. Federal Aviation Administration (FAA), a crucial step toward commercializing its electric vertical takeoff and landing (eVTOL) aircraft. Joby is currently in the fourth of five certification stages and plans to launch its commercial air taxi service by 2025. The company also recently introduced its third prototype aircraft from its pilot production line in Marina, California, and has begun expanding its manufacturing facilities to more than double its output capacity.

Toyota's investment will occur in two equal installments, with the first expected to close later this year and the second in 2025. The funds will be provided in the form of cash for common stock, according to Toyota. Additionally, Toyota's involvement with Joby goes beyond financial support. Since 2019, the Japanese automaker has shared its expertise in the Toyota Production System with Joby, helping with planning, manufacturing methods, and tooling design.