Space race: Toyota invests $44 million in rocket startup amid Japan govt push for private sector | Company Business News-OxBig News Network

The global space race has reignited with private sector push into the space — from Elon Musk’s SpaceX to Jeff Bezos’ Blue Origin. And now Japanese auto major Toyota Motor Corporation has made firm moves too.

Japanese start-up Interstellar Technologies, which aims to mass produce lightweight rockets, on January 7 said the MNC is investing $44 million (7 billion yen) in it, through a subsidiary, according to a Bloomberg report.

Made through Woven, the company’s research unit, the investment will gain Toyota a seat at Interstellar’s executive board.

Japanese Govt Push For Private Participation

Notably, the Japanese government has recently made progress to “nurture the country’s private space sector” as the United States launches over 100 rockets annually, China over dozens and India’s homegrown missions achieving continued success.

In comparison, Japan’s successful space attempts are still in the single digits.

According to the statement from Interstellar, Japan made three launches in 2023, which means that there is much further to go to reach its goal of 30 launches a year by 2030 first half.

The start-up pointed out that Japan will need a “structural transformation of the domestic space industry”, adding that the company aims to “leverage automotive industry expertise, including Toyota’s production methods, to transition rocket manufacturing into a high-quality, cost-effective, and scalable process.”

Notably in December 2024, Japan failed for the second time to launch its first commercial rocket from its first commercial launchpad.

‘Broader Effort to Innovate Transportation’

According to Toyota Chairman Akio Toyoda, his company’s interest in rockets is part of a broader effort to innovate in transportation. He hinted that the hope is to compete with Musk’s SpaceX. “The future of mobility shouldn’t be limited to just cars. Or just one car company, for that matter,” Toyoda said.

This is not Toyota’s maiden adventure in the space sector, In 2019 the auto major collaborated with the Japan Aerospace Exploration Agency (JAXA) to build the lunar rover used in NASA’s Artemis program which seeks to take manned missions to the Moon.

Astronauts will be able to ride without spacesuits in the Toyota rover and explore the lunar surface for longer periods of time, the US State Department said in April after the two governments signed an agreement for the vehicle.

For Toyota, the deal with Interstellar deal is one small step for many companies looking to take advantage of booming demand for spacecrafts able to carry satellites to orbit.

Hajime Kumabe, Woven’s CEO told reporters that the investment in Interstellar is “another way to expand mobility in land, sea and air”, adding that Toyota’s craftsmanship expertise will be an asset to rocket manufacturing.

Japan Launches Strategic Fund

The report noted that Japanese companies have been credited for their satellites and precision instruments, but the country’s geography makes building of launching facilities difficult. In November 2024 the Japan govt announced recipients (startups, research institutions and manufacturers), of its strategic fund, who would receive ¥1 trillion over the next 10 years.

(With inputs from Bloomberg)