Joby Aviation, Inc. and Toyota Motor Corporation announced the official launch of their strategic manufacturing joint venture, marking a historic step toward scaling the production of electric vertical takeoff and landing (eVTOL) aircraft. The newly formed entity, named Joby Toyota Aero Manufacturing Preparation Company, represents a deep integration of Toyota’s world-class automotive assembly systems with Joby’s pioneering aerospace technology. The news prompted a strong reaction on Wall Street, with Joby’s stock rising 7% following the announcement of the manufacturing alliance.
This joint venture arrives at a critical moment for the urban air mobility sector. As Joby moves closer to securing government approvals for its commercial electric vertical takeoff and landing aircraft, establishing a high-volume manufacturing pipeline has become its primary challenge. By combining forces with one of the world’s largest and most efficient automakers, Joby aims to transition from building low-volume prototypes to running a high-capacity commercial assembly line capable of meeting anticipated global demand.
The Financial Blueprint of the Air Taxi Joint Venture
According to recent regulatory filings, the corporate and financial structure of the newly formed Joby Toyota Aero Manufacturing Preparation Company gives the Japanese automaker a controlling stake. Under the terms of the stockholders’ agreement, Toyota holds a 51% ownership stake in the joint venture, while Joby retains the remaining 49%. This majority ownership reflects Toyota’s deep involvement in the operational and manufacturing direction of the new company.
The initial financial capital contributions for the joint venture include:
- Toyota acquired 1,020,000 shares of the joint venture’s common stock for a total cash payment of $1,020,000.
- Joby purchased 980,000 shares of the joint venture’s common stock for a total cash payment of $980,000.
- The joint venture will operate under a five-member board of directors, with Toyota designating three directors and Joby designating two.
The governance structure also outlines strict operational control mechanisms. While significant corporate actions—such as modifying the core business plan, executing mergers, issuing new equity, or selling major assets—require mutual approval from both companies, other critical financial decisions require Toyota’s explicit approval. These include the incurrence of debt and the payment of corporate dividends, ensuring that Toyota’s financial management standards govern the joint venture’s growth.
The Deep-Seated History of the Toyota-Joby Alliance
While the creation of the manufacturing joint venture represents a significant step forward, the relationship between Toyota and Joby is not new. The two companies have collaborated closely for nearly a decade, with Toyota acting as an early financial backer and manufacturing advisor. Toyota began financing the aerospace startup in 2020, two years after its venture capital arm participated in an early-stage funding round. Since then, the automaker’s financial and operational role has grown exponentially.
Toyota’s total capital backing of Joby has reached a massive $894 million. This total includes a landmark $500 million investment committed in late 2024, which the automaker structured to fund in two equal tranches. The final tranche of this investment was tied to the completion of specific collaborative manufacturing agreements and regulatory milestones, which the establishment of this new joint venture successfully satisfies. This massive capital backing represents one of the largest automotive investments into the eVTOL sector, demonstrating Toyota’s long-term belief in the commercial viability of aerial ridesharing.
Applying Toyota’s Production System to Advanced Aviation
To prepare for commercial-scale production, Toyota has steadily integrated its own manufacturing experts into Joby’s California operations. Currently, Toyota has approximately 30 engineers and manufacturing specialists working directly on-site at Joby’s production facilities in Marina, California. These specialists are sharing key insights on improving production efficiency, streamlining workflow layouts, and implementing advanced safety protocols.
The joint venture aims to apply the world-renowned Toyota Production System (TPS) to the aerospace assembly line. Historically, the aviation industry has relied on highly manual, low-volume assembly methods that are poorly suited for mass production. By utilizing TPS principles—such as just-in-time parts delivery, automated error detection, and continuous quality improvement—the joint venture hopes to build electric air taxis with the same level of speed, precision, and cost-efficiency that defines modern automotive manufacturing. Toyota is also supplying key subcomponents, including high-performance electric motors, for Joby’s aircraft, cementing its role as a core hardware partner.
Scaling Production Targets to 500 Aircraft Annually
The ultimate goal of the strategic manufacturing alliance is to scale up the assembly of Joby’s S4 Series electric air taxi. The S4 is an all-electric, five-seat aircraft designed to take off vertically like a helicopter and transition to wingborne flight like a conventional airplane. To support this aircraft’s commercial rollout, Joby is expanding its manufacturing footprint across two primary sites in the United States.
In addition to its existing manufacturing hub in Marina, California, Joby is building out a large-scale production facility in Dayton, Ohio. By leveraging the deep pool of aerospace manufacturing talent in Ohio, the company aims to scale its production capacity to four aircraft per month, with a long-term goal of producing up to 500 aircraft a year once both facilities are fully operational. Achieving this high-volume output will require a seamless supply chain of certified components, making the operational expertise of the new Toyota joint venture a critical asset for Joby’s long-term business plan.
Navigating the Complex Road to Regulatory Certification
Before Joby can begin flying paying passengers on a commercial scale, the company must obtain Type Certification from the Federal Aviation Administration (FAA). This rigorous, multi-stage process ensures that the eVTOL aircraft design meets strict safety and airworthiness standards. Joby has made strong progress, advancing through the fourth stage of the five-stage FAA certification process, which puts it among the industry leaders in the race to commercialization.
However, because the FAA has never certified a civil eVTOL aircraft before, the final stages of certification are filled with regulatory uncertainty. Even minor technical questions or new safety requirements can cause delays to the commercial timeline. To mitigate this risk and build operational experience, Joby is participating in a major White House-backed initiative: the Electric Vertical Takeoff and Landing Integration Pilot Program (eIPP). This program, established by a presidential executive order, brings together federal agencies like the FAA and the Department of Transportation with local authorities to streamline airspace integration and infrastructure development.
The Strategic Importance of the White House eIPP Initiative
The eIPP program represents a major regulatory breakthrough for Joby and the wider air taxi industry. Through this initiative, Joby has secured the opportunity to begin early flight operations in ten U.S. states, including New York, New Jersey, Florida, Texas, and California. These early flights will allow communities to see and hear electric air taxis in action, helping to build public trust and accelerate regulatory coordination.
By running real-world flights under the eIPP program, Joby can gather valuable operational data on airspace integration, noise profiles, and charging infrastructure requirements. This data will help the FAA streamline approvals for future commercial services, significantly shortening the timeline between final Type Certification and full-scale commercial deployment. It also allows Joby to demonstrate American leadership in aviation innovation, proving that the next generation of clean, quiet flight is ready for real-world integration.
Commercial Launch Readiness and the Blade Acquisition
Even as it works through the certification process, Joby is building the commercial infrastructure necessary to support an immediate launch of passenger services once approvals are granted. The company is targeting its first paying passengers, with initial commercial flights planned for markets like Dubai and selected cities in the United States.
To accelerate this commercial rollout, Joby executed a major strategic acquisition, purchasing the passenger business of helicopter ride-share company Blade Air Mobility for up to $125 million. This acquisition provides Joby with several critical commercial advantages:
- Infrastructure Access: The company gains access to Blade’s existing passenger terminals and heliports in key high-demand markets like New York and Southern California.
- Customer Database: Joby inherits an established customer base of high-net-worth commuters who are already accustomed to paying a premium for vertical travel.
- Operational Brand: The company can leverage Blade’s operational expertise and brand recognition to market its quiet, emission-free electric alternative.
By combining the physical infrastructure from the Blade acquisition with the high-volume manufacturing capabilities of the Toyota joint venture, Joby is building a vertically integrated air taxi business capable of managing everything from aircraft assembly to daily passenger operations.
The Broader Competitive Landscape of Urban Air Mobility
The creation of the Joby Toyota Aero Manufacturing Preparation Company is a clear sign that the vertical flight industry has evolved from a futuristic concept into a major industrial race. Joby is not alone in this market, as several well-funded competitors are also racing to commercialize their own eVTOL aircraft. Companies like Archer Aviation, BETA Technologies, and Lilium are making rapid progress with their own certification programs.
This intense competition has attracted the attention of several global automakers, who see air mobility as a natural extension of their core business:
- Stellantis has partnered heavily with Archer Aviation, providing manufacturing support and investing hundreds of millions of dollars to help build Archer’s assembly facility in Georgia.
- Hyundai Motor Group has established its own dedicated air mobility subsidiary, Supernal, with plans to design and manufacture its own eVTOL aircraft in-house.
- Honda Motor Company is developing its own hybrid eVTOL concept, leveraging its existing experience in light jet manufacturing.
Among these partnerships, the Joby-Toyota joint venture stands out for its deep operational integration. Rather than simply acting as an advisor or a passive financial backer, Toyota has taken a 51% controlling stake in a dedicated manufacturing entity. This level of commitment sets a new standard for automotive-aerospace collaboration, giving Joby a significant manufacturing advantage as the industry prepares for full-scale commercial deployment.
Conclusion
The strategic manufacturing joint venture between Joby Aviation and Toyota Motor Corporation represents a defining moment for the urban air mobility sector. By establishing the Joby Toyota Aero Manufacturing Preparation Company, the two partners are combining the cutting-edge innovation of electric aviation with the unmatched scale and precision of the Toyota Production System. Backed by a $1.02 million initial investment and supported by Toyota’s massive $894 million overall capital backing, the joint venture provides Joby with the financial and operational resources necessary to transition from low-volume assembly to high-capacity commercial production.
While the path to commercialization is filled with regulatory and technical challenges, Joby’s progress through the FAA certification stages and its participation in the White House-backed eIPP program position the company as a clear frontrunner in the vertical flight race. By securing key manufacturing pipelines with Toyota and acquiring critical passenger terminal access through the Blade acquisition, Joby is building a robust, scalable business model. As the industry prepares for commercial flights, the Joby-Toyota manufacturing alliance will serve as a powerful engine driving the transition of flight from a premium luxury into an everyday transportation reality.
