According to Bloomberg, on January 7th, Japanese aerospace company Interstellar Technologies announced that Toyota Motor Corporation, through its subsidiary Woven by Toyota, has invested 7 billion yen (approximately $44 million) in the company. Additionally, Toyota will receive a seat on Interstellar's executive board.
The report states that Interstellar's goal is to mass-produce small rockets, with the ambition to one day tap into the growing commercial space market. This investment not only marks Toyota's official entry into the space sector but also represents a significant step forward in the Japanese government's efforts to foster its domestic private space industry. However, for a fledgling startup, keeping pace in the fast-moving and highly competitive field remains a challenge.
The Japanese government aims to launch 30 rockets annually by the early 2030s, positioning Japan as the aerospace hub of Asia with an 8 trillion yen space industry. It has also been providing subsidies to startups like Interstellar and Space One.
Interstellar pointed out in a statement that Japan launched only three rockets in 2023, leaving a significant gap to reach the aforementioned target. To achieve this goal, Japan will need a "structural transformation of its domestic space industry." The company stated its aim is to "transform rocket manufacturing into a high-quality, low-cost, and scalable process by leveraging automotive industry expertise, including Toyota's production methods."
On January 6th, Toyota Motor Corporation Chairman Akio Toyoda mentioned during his speech at CES 2025 that Toyota's involvement in the rocket business is part of the company's broader innovative efforts in the transportation sector, hinting at a desire to compete with SpaceX in the future. "Future mobility should not be limited to just cars, and it shouldn't be only one car company expanding into space business," he said.
Hajime Kumabe, CEO of Woven by Toyota, added, "This is another way to expand mobility across land, sea, and air. Interstellar's rocket manufacturing efforts will benefit from our craftsmanship expertise."
Founded in Hokkaido in 2019, Interstellar became the first Japanese company to send a commercially developed rocket into space, although its Zero rocket is still under development. Last month, Interstellar's competitor, Japanese commercial space company Space One, failed in its second attempt to launch the Kairos 2 rocket.
