Toyota is expanding its reach beyond Earth with a bold $44 million investment in Interstellar Technologies, a Japanese startup developing small rockets.
The investment, which is made through Toyota's research division, Woven by Toyota, marks the company's significant step into the space industry.
Toyota's Woven City and Rocket Investment Signal Broader Vision for Future Mobility
Toyota hopes that by applying its expertise in mass vehicle production, it can help transform rocket manufacturing into a cost-effective, scalable process. The deal also ensures Toyota a position on Interstellar's executive board.
Chairman Akio Toyoda explained that Toyota's interest in space is part of a larger vision to innovate in transportation.
Toyoda pointed out that the future of mobility shouldn't be limited to just cars or one car company, indirectly referencing SpaceX and its CEO, Elon Musk. He added that Toyota wants to explore all avenues of transportation, including space.
According to CNBC, Interstellar Technologies, founded in 2013, has launched its small MOMO rockets into space, but it has yet to send a satellite into orbit.
The company plans to develop larger rockets, including the ZERO and DECA models, designed to launch spacecraft into orbit. Toyota's involvement aims to leverage its experience in precision manufacturing and its ability to scale production.
The Japanese space industry has been lagging behind global competitors like the US, China, and India, which launch dozens of rockets annually. In comparison, Japan only launched three rockets in 2023.
Interstellar Technologies hopes that Toyota's partnership will help accelerate the development of Japan's private space industry. In particular, the startup is looking to Toyota's production methods to increase efficiency and reduce costs.
Toyota is also focusing on other cutting-edge projects, such as the Woven City, a prototype city of the future located at the base of Mount Fuji. The city is designed to test and develop new technologies, including autonomous vehicles.
Toyota aims to use the Woven City to create innovative solutions that can be applied globally.
Toyota Enters Space Sector to Diversify and Lead in Innovation
Toyota's move into the space sector comes as the competition for space exploration intensifies. Companies like SpaceX and Jeff Bezos' Blue Origin have dominated the commercial space industry in recent years, Mint said.
However, with this investment in Interstellar Technologies, Toyota is positioning itself to play a key role in the growing market for commercial rockets and satellite launches.
The partnership with Interstellar Technologies is also part of Toyota's broader strategy to diversify its business and explore new frontiers.
While this is Toyota's first significant venture into rocket development, the company has previously worked with the Japan Aerospace Exploration Agency (JAXA) on lunar rover technology for NASA's Artemis program.
Toyota's move into space signals its determination to innovate and lead in transportation technologies, no matter the frontier.
With global demand for satellites and launch vehicles expected to grow, Toyota's investment positions the company to capitalize on the booming space industry, further expanding its reputation as a leader in transportation innovation.
