Toyota Ventures into Space with $45 Million Investment in Japanese Rocket Startup

Toyota Motor Corporation is expanding its horizons beyond Earth, diving into the space industry with a significant investment in orbital rocket development. The automaker announced a 7 billion yen ($44.4 million) stake in Interstellar Technologies, a Japanese startup specializing in satellite launch vehicles.

A New Frontier for Mobility
At the Consumer Electronics Show (CES) in Las Vegas, Toyota Chairman Akio Toyoda expressed the company’s ambition to explore mobility that extends beyond cars—and even beyond Earth. “We are exploring rockets too, because the future of mobility shouldn’t be limited to just Earth or just one car company,” Toyoda remarked, subtly referencing Tesla and SpaceX’s overlapping efforts under Elon Musk.

Founded in 2013, Interstellar Technologies has achieved seven suborbital launches with its MOMO rockets, reaching space for the first time in 2019. The startup now aims to develop its larger ZERO and DECA rockets, designed to deliver satellites into orbit.

Toyota’s Advantage in Mass Production
Toyota plans to leverage its expertise in large-scale manufacturing to aid Interstellar Technologies in building its rockets. This aligns with the company’s innovative projects under its “Woven by Toyota” mobility division, which has already gained attention for developing the futuristic Woven City in Japan.

Taking on Competitors in Japan’s Space Market
Toyota’s move places it in direct competition with Mitsubishi Heavy Industries, which develops rockets for Japan’s space agency, JAXA. Mitsubishi’s H3 rockets were designed to compete with SpaceX’s Falcon 9 in terms of pricing and capabilities, though they faced significant delays.

Woven City: A Testbed for Innovation
In addition to its space endeavors, Toyota announced the completion of the first phase of Woven City—a 175-acre experimental "city of the future" at the base of Mt. Fuji. The project focuses on testing emerging technologies like autonomous vehicles and smart infrastructure.

According to Toyoda, Woven City is not designed to turn a profit but serves as a proving ground for cutting-edge ideas that could shape the future of mobility.
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