Toyota has made a $500 million investment in Joby Aviation, a California-based startup focused on developing electric air taxis, according to a recent blog post by Toyota. This latest investment brings Toyota's total investment in the company to $894 million, following a previous $394 million capital injection in 2020.

The funding is aimed at helping Joby Aviation complete the Type 2 certification process with the U.S. Federal Aviation Administration (FAA), a critical step toward commercialising its electric vertical takeoff and landing (eVTOL) aircraft. The company is currently in the fourth of five certification stages and plans to launch its commercial air taxi service by 2025. 

Joby Aviation also recently unveiled 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 be made in two equal tranches, with the first scheduled to close later this year and the second in 2025. The funds will be made in the form of cash for common stock, according to Toyota.

Toyota's involvement with Joby extends beyond financial backing. Since 2019, the Japanese automaker has shared its Toyota Production System expertise with Joby, assisting in the planning, manufacturing methods, and tooling design.