Toyota Motor said Wednesday it will invest another $500 million in Joby Aviation to support certification and commercial production of Joby’s electric air taxi.

The Japanese automaker's new funding is on top of $394 million in prior investments it made in Joby and is part of a strategic alliance on commercial manufacturing. The investment will be made in the form of cash for common stock, with the first tranche set to close later in 2024 and the second next year.

Joby said it continues to make key progress towards commercialization and certification and recently broke ground on an expanded facility in California. "We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges," said Toyota Motor North America CEO Ted Ogawa.

Toyota engineers are working side-by-side with the Joby team in California and last year the two companies signed a long-term agreement for Toyota to supply key powertrain and other components for Joby aircraft.

(Reporting by David Shepardson, Editing by Louise Heavens)