Joby Aviation, a Californian startup that is set to launch its electric air taxis operation next year, secured a new investment of $500 million from Toyota.
The money will be invested in the production of the first models and also in the rigorous certification and approval process required by the Federal Aviation Administration (FAA).
Joby has obtained four out of the five necessary certifications and plans to start commercial operations of its air taxis in 2025.
Toyota had already invested $394 million in the business in 2020 – but is not just providing funds. The Japanese automaker has a partnership with the startup for technological and administrative support, as well as in the development of the production line.
Founded in 2009, Joby is aiming to lead the new market of eVTOLs, which stands for electric vertical take-off and landing.
Joby also has partnerships with the US Air Force and has received orders from Delta Air Lines. In 2020, it acquired Elevate, Uber’s aviation startup, for $75 million.
These aircraft can open up a segment of urban mobility – with more flexibility and lower costs than helicopters – in addition to having a lower environmental impact. With electric motors, eVTOLs are quieter and do not emit carbon into the atmosphere.
Archer is another Californian startup that is close to achieving the final certification required to get its models in the air. The company’s prototype has a range of up to 100 kilometers and can reach speeds above 200 km/h.
Based in Palo Alto, the company has United Airlines and Stellantis among its main financial supporters and strategic partners.
According to United’s estimate, passengers taking a 20-kilometer flight between Hollywood and Los Angeles International Airport will reduce their carbon footprint by 50% compared to a helicopter transfer.
Eve, Embraer’s startup created to compete in this market, is set to conduct the inaugural flight of its first prototype in early 2025.
Eve told Brazil Journal that it hopes to obtain its primary certification from the National Civil Aviation Agency (ANAC), which has a bilateral agreement with the FAA of the United States. This process could accelerate the company’s entry into the American market.
Eve also mentioned that ANAC plans to publish the certification basis later this year, establishing safety standards for the aircraft. After this stage, specific criteria and certification tests will be defined.
Embraer’s startup plans to start its services in 2026.
The company has already signed letters of intent for the delivery of up to 3,000 units worth $14.5 billion.
In addition to Archer and Joby, Embraer’s two other main direct competitors are Lilium and Vertical.
“Boeing and Airbus have small operations in the development of eVTOLs, with less time and money dedication,” said BTG in a recent report.
Deloitte estimated that there are about 200 companies developing eVTOLs worldwide, including those focused on cargo transportation.
According to the consultancy, this market is expected to reach $4 billion in 2025 and $57 billion in the next ten years.
Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
