By Chester Dawson & Bruce Einhorn/Bloomberg
07 Jan 2025, 11:21 am
The Future of Mobility shouldn’t be limited to just cars. Or just one car company, for that matter.
Toyota chairman Akio Toyoda’s vision for a broader future in transportation has led the Japanese automaker to invest in a startup that aims to revolutionize the space industry with mass-produced lightweight rockets.
Toyota Motor Corp is investing ¥7 billion (US$44 million or RM199.68 million) in Interstellar Technologies Inc through its subsidiary and research unit, Woven by Toyota. In return, the carmaker will gain a seat on the startup’s executive board.
This investment marks another significant step in Japan’s push to nurture its private space sector, driven by the government’s efforts to create a competitive industry that can rival global players like SpaceX.
The Japanese government has been actively supporting startups and research institutions through its strategic fund, which will allocate ¥1 trillion over the next decade. However, despite these initiatives, Japan still lags behind in terms of successful space launches, with only three attempts made in 2023.
Interstellar Technologies Inc aims to launch 30 times annually by the first half of the 2030s, but achieving this goal will require a significant transformation of the domestic space industry. The startup believes that leveraging automotive industry expertise, including Toyota’s production methods, can help transition rocket manufacturing into a high-quality, cost-effective, and scalable process.
Toyota’s investment in Interstellar Technologies Inc is part of its broader effort to innovate in transportation and mobility. Chairman Akio Toyoda hinted at the investment in his speech at CES in Las Vegas on Monday, emphasizing that the future of mobility shouldn’t be limited to just cars or one car company.
The partnership between Toyota and Interstellar Technologies Inc also highlights the growing demand for spacecrafts able to carry satellites to orbit. The Japanese government’s strategic fund has already begun doling out grants to various startups and research institutions, with many more expected to follow in the coming years.
However, Japan still faces significant challenges in building an expansive network of launch facilities due to its geography. A recent failed launch attempt by Space One Co served as a painful reminder that trying to reach orbit isn’t for the faint of heart.
**Despite these challenges, Interstellar Technologies Inc
