Joby is doubling US manufacturing in expanded deal with Toyota
Joby Aviation (JOBY) is planning to double its manufacturing in the United States through an expanded partnership with Toyota Motor Corporation (TM), the company said on Wednesday.
According to Joby, the expanded manufacturing will support its plan to begin producing four electric vertical takeoff and landing (eVTOL) aircraft per month in 2027.
The company said that it is working with Toyota "to finalize a strategic manufacturing alliance that will support the ramp-up of production."
Joby closed the first $250 million tranche of a strategic investment by Toyota back in May.
Toyota is Joby's largest external stakeholder, having invested $400 million in the company before the latest investment earlier this year. Toyota President and CEO Tetsuo "Ted" Ogawa joined Joby’s board in 2023, cementing the strategic alignment between the two firms.
“Our partnership with Toyota has been central to our ability to scale manufacturing,” Joby founder and CEO JoeBen Bevirt said in a statement. “Their knowledge, experience and expertise has been invaluable as we enter this next stage of growth.”
In addition to the Toyota investments, Joby also pointed out that it has $1 billion in potential sales through a Memorandum of Understanding (MoU) it signed in June with Saudi Arabian firm Abdul Latif Jameel that calls for Joby to produce up to 300 of its eVTOLs.
Adbdul Latif Jameel was an investor in Joby’s Series C funding round.
The two companies will focus on the Saudi Arabian market as part of the deal, exploring distribution and sales collaborations, the launch of local air taxi services, and pilot training.
Joby looks to capitalize on 'golden age of aviation'
Joby additionally noted the Trump administration's planned launch of the Electric Vertical Takeoff and Landing Integration Pilot Program (eIPP), which will "jumpstart air taxi operations" and allow eVTOL aircrafts to begin operations in select markets as early as next year, ahead of receiving full certification from the Federal Aviation Administration (FAA).
Both Joby and rival Archer Aviation (ARCHR) have applied to enter the pilot programs.
“We are entering the next golden age of aviation,” Bevirt said. “From factories in California and Ohio, we plan to redefine how people travel across the world, as Joby becomes one of a small number of companies in the world with the industrial capability to build aircraft at this pace and quality.”
Joby's stock fell 6.1% on Wednesday, but has surged 62.5% for the year.
The company announced in July that it had expanded the production capacity at its manufacturing site in Marina, California across 435,500 square feet of total space. Once it’s fully operational, the site is expected to be able to produce up to 24 aircraft per year.
Joby also renovated its manufacturing site in Dayton, Ohio, where it will produce and test aircraft components for its Pilot Production line.
It's been a busy year for Joby, which has seen it make a push into the defense sector though a partnership with L3 Harris Technologies (LHX), while also entering the luxury air taxi space through its acquisition of Blade Air Mobility (BLDE).
Joby said last month that it is set to launch a pilot program offering commuter flights from Manhattan to Westchester County in New York through Blade.
Blade currently operates a helicopter-based air taxi service, allowing it to begin offering this service now.
Joby plans to transition Blade’s service from conventional helicopters to its VTOLs once the latter aircraft is launched.