Toyota throws $44 million into rocket venture with Interstellar Technologies

In a significant move towards expanding its technological portfolio, Toyota's mobility subsidiary, Woven by Toyota, announced a substantial investment of $44.3 million into the Japanese rocket company, Interstellar Technologies. This investment is part of IST's Series F fundraising efforts, aimed to close shortly. IST has expressed its ambition to integrate automotive industry practices, particularly leveraging Toyota's renowned production methods, to improve the quality and scalability of rocket manufacturing. This investment is intended to enhance IST's operational capabilities and contribute to the Japanese government's goal of achieving approximately 30 rocket launches per year by the early 2030s. The business alliance formed between Toyota and Interstellar Technologies extends beyond financial backing. Woven by Toyota aims to guide the rocket company's production processes by providing stronger supply chain management and corporate governance. The collaboration will be marked by Woven's appointment of a director to IST’s board, showcasing a commitment to a deeper partnership that combines expertise from both the automotive and aerospace sectors. The deal is anticipated to bring innovative practices from the automotive industry into the aerospace field, potentially revolutionizing how rockets are manufactured. Historically, the two entities have maintained a cooperative relationship since 2020, marked by personnel exchanges that have facilitated knowledge sharing and collaboration. This previous experience may prove beneficial as both firms embark on this trailblazing venture in aerospace. Toyota Chairman Akio Toyoda emphasized the notion during his recent speech at the CES trade show, highlighting the diverse potential of mobility that transcends terrestrial applications and ventures into aerospace. As Japan strives to bolster its rocket launch capacity, the timing of this investment is critical. With only three rocket launches occurring in the past year, the Japanese government is highly motivated to expand its capabilities and meet the anticipated growing demand for launches, both locally and internationally. This partnership represents a significant step towards elevating Japan's standing in the global aerospace market and demonstrates Toyota's commitment to being a leading player in transforming mobility, whether on land or in the sky.