Toyota, the world’s largest carmaker, is taking a big step into space. On Tuesday, Toyota announced a major partnership with Japanese space startup Interstellar Technologies (IST). Through its subsidiary Woven by Toyota, the automaker has invested 7 billion yen (around $44.4 million) in IST as part of the company’s Series F funding.
This shows Toyota’s growing interest in space technology. The partnership aims to use Toyota’s experience in manufacturing to help IST produce rockets on a larger scale.
Toyota’s Chairman, Akio Toyoda, shared the company’s bold vision during his speech at CES 2025 in Las Vegas. He introduced the idea of “invention by kakezan,” which means “invention by multiplication.” Toyoda explained how combining efforts leads to new possibilities.
“When it comes to what’s possible when you work together, the sky’s the limit,” Toyoda said. After a pause, he added, “And speaking of the sky, we’re exploring rockets, too. The future of mobility shouldn’t be limited to just Earth or just one car company.”
This comment seemed to reference Tesla and SpaceX, led by Elon Musk, a major competitor in the space industry.
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Woven by Toyota is Toyota’s futuristic development arm. It is already building Woven City, a “city of the future” in Japan near Mount Fuji. This project focuses on autonomous driving, advanced technology, and creating a sustainable community.
As part of the new partnership with IST, Woven by Toyota will help improve IST’s rocket production by strengthening supply chains and improving corporate governance. It will also appoint a director to IST’s board.
Hajime Kumabe, CEO of Woven by Toyota, explained, “This is another way to expand mobility on land, sea, air, and now space. Our craftsmanship expertise will be an asset to Interstellar’s rocket manufacturing.”
Interstellar Technologies, based in Hokkaido, is a private Japanese company working on rocket development. In 2019, IST became the first Japanese company to send a commercially developed rocket into space. However, their current orbital launcher, Zero, is still in development.
Toyota’s investment aims to speed up the production of lightweight rockets for commercial use. This collaboration combines Toyota’s advanced production methods with IST’s space expertise.
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Despite its achievements, IST faces challenges in Japan’s competitive space industry. Last month, its rival, Space One, attempted to launch its orbital rocket, Kairos. Unfortunately, the mission failed.
This is not Toyota’s first step into the space world. Since 2019, the automaker has worked with the Japan Aerospace Exploration Agency (JAXA) to develop a lunar rover for NASA’s Artemis program. This rover will carry astronauts on the moon’s surface, allowing them to travel without spacesuits.
Toyota’s involvement in space shows its commitment to innovation beyond cars. It is now exploring how its technologies can be used for space exploration and mobility.
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Toyota’s investment in IST aligns with Japan’s goals for the space industry. The Japanese government wants to make Japan a leader in space by the early 2030s. The goal is to launch 30 rockets per year and grow the space industry to 8 trillion yen (about $61 billion).
Woven City also plays a key role in this vision. Located in a mountainous area, Woven City faces challenges with telecommunications. Toyota hopes to use insights from space technology to solve communication problems on Earth.
“When you think about cars constantly moving, you need uninterrupted communication,” said Kumabe in an interview with TechCrunch. “The seamless communication we achieve in Woven City can inspire space solutions as well.”
The global space industry is very competitive. Companies like SpaceX have set high standards with reusable rockets and satellite launches. Japan’s space industry, on the other hand, is still growing.
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In 2023, Japan had only three successful rocket launches. To reach its goal of 30 annual launches, the country must invest heavily in innovation. Toyota’s partnership with IST is a step in that direction.
However, challenges remain. Japan’s geography makes it hard to build large launch facilities. Recent setbacks, such as Space One’s failed launch, show how difficult this industry can be.
By working with IST, Toyota hopes to create high-quality, cost-effective rockets. These efforts could help Japan become Asia’s space leader.
Toyota also wants to redefine mobility, not just on Earth but in space. Chairman Akio Toyoda summarized this vision during his CES speech: “The future of mobility shouldn’t be limited to just Earth or just one car company.”
