Elon Musk’s Starlink and SpaceX now face a new rival as Toyota takes a bold step into the commercial space industry. Toyota is investing $44 million in Japanese rocket company Interstellar Technologies, signaling its ambition to challenge SpaceX and expand the future of mobility beyond cars.
Toyota’s $44 Million Investment in Space Innovation
Through its Woven by Toyota division, Toyota is backing Interstellar Technologies to mass-produce lightweight, low-cost rockets for the expanding commercial space market. This investment includes a seat for Toyota on Interstellar’s board, strengthening the partnership.
The move aligns with Japan’s broader strategy to bolster its private space sector, which lags behind global competitors. Unlike the US and China, which achieve dozens or even hundreds of rocket launches yearly, Japan’s launches are still in single digits annually.
Driving Structural Transformation in Japan’s Space Sector
Interstellar Technologies has set ambitious goals, aiming for 30 launches annually by the early 2030s. The company acknowledges the need for a “structural transformation” in Japan’s space industry to remain competitive.
Toyota plans to bring its manufacturing expertise to the table, helping Interstellar create a “high-quality, cost-effective, and scalable” rocket production process. Speaking at CES in Las Vegas, Toyota Chairman Akio Toyoda hinted at the company’s broader ambitions.
He remarked, “The future of mobility shouldn’t be limited to just cars. Or just one car company, for that matter.”
Tapping into Toyota’s Space-Related Expertise
This investment is not Toyota’s first venture into space. The carmaker previously collaborated with the Japan Aerospace Exploration Agency (JAXA) in 2019 to design a lunar rover for NASA’s Artemis program.
Woven CEO Hajime Kumabe emphasized Toyota’s craftsmanship as a key asset for Interstellar, saying it would aid in expanding mobility across “land, sea, and air.” He added, “Toyota’s craftsmanship expertise will be a valuable asset to Interstellar’s rocket manufacturing.”
Challenges and Opportunities in Japan’s Space Race
While Japan’s government is supporting the private space sector with a ¥1 trillion strategic fund, challenges persist. Geographical limitations for launch sites and setbacks like Space One Co.’s failed commercial rocket launch highlight the hurdles for Japan’s space industry.
Still, Toyota’s partnership with Interstellar represents a significant step forward. This collaboration is part of a growing trend of companies seeking to capitalize on rising demand for satellite launch capabilities.
Expanding Beyond Mobility
Toyota’s investment in Interstellar reflects a larger vision for transportation. At CES, Toyoda highlighted Toyota’s commitment to innovation across all forms of mobility, showcasing how the company is positioning itself at the intersection of automotive and aerospace advancements.
Notably, at the same event, Nvidia announced Toyota as a new customer for its autonomous driving AI products, underscoring Toyota’s continued push into advanced technology.
