Toyota Joins Japan’s Space Race with $44M Rocket Investment in Interstellar

Toyota is backing Japan’s rocket ambitions with a ¥7 billion ($44.3 million) investment in Interstellar Technologies as part of its Series F funding round. Interstellar, a company aiming to make rockets as scalable and efficient as cars, plans to use the funding to expand its rocket manufacturing capabilities.

The investment is led by Toyota subsidiary Woven by Toyota, which just days ago unveiled its futuristic Woven City project at CES 2025. Now, Interstellar, which already uses 3D printing to manufacture critical rocket components, plans to combine this approach with Toyota’s renowned car manufacturing techniques to build rockets faster, cheaper, and larger.

A Partnership Years in the Making

Since 2020, Interstellar and Toyota have collaborated through personnel exchanges, with 11 Toyota employees joining Interstellar to share expertise in production and operations. This collaboration laid the groundwork for a strategic business alliance focusing on reducing costs, cutting lead times, and establishing a mass production system for rockets.

“Since the start of our business in 2013, Interstellar Technologies has valued a hands-on approach to manufacturing and a spirit of trial and error. Woven by Toyota, a leader in driving mobility transformation within the Toyota Group, is the ideal partner to help us evolve our rocket production from one-of-a-kind manufacturing to a scalable supply chain, bringing our vision of a future where everyone can access space’ to life. I am truly delighted that, after years of talent exchange since 2020, we can now strengthen our collaboration to the next level,” explained Interstellar CEO Takahiro Inagawa.

Interstellar pioneered using 3D printing for rocket manufacturing, producing complex and critical components like fuel injectors, avionics hardware, and gimbal mechanisms. These parts are essential for controlling engine thrust and overall rocket performance and are created with fewer materials, less weight, and higher precision, lowering production costs and shortening manufacturing timelines.

By integrating Toyota’s production techniques, including cost-effective manufacturing and supply chain optimization, Interstellar hopes to scale these processes even further to meet the rising demand for satellite launches worldwide and help Japan increase its launch capabilities.

The space industry is booming, with small satellite launches skyrocketing from 141 in 2016 to nearly 3,000 in 2023. While the U.S. and China dominate, Japan is working to catch up. The Japanese government has set a goal to increase domestic launch capacity to 30 launches annually and double the value of its space industry from roughly ¥4 trillion ($26 billion) to ¥8 trillion ($52 billion) by the early 2030s. Achieving this will need changes in how rockets are built, shifting from custom-built designs to a scalable production model. The partnership between Interstellar and Toyota aims to use advanced manufacturing to meet the growing demand for satellite launches and help Japan compete in the space industry.

More Than Rockets

Interstellar isn’t just about rockets; it’s also developing satellite communications technology similar to SpaceX’s Starlink. This technology aims to connect satellites directly to ground devices like smartphones, providing high-speed internet. By combining rocket launches with satellite services, Interstellar wants to vertically integrate space infrastructure, a model proven successful in the U.S.

For Toyota, this isn’t the brand’s first venture into space. The company is already working with Japan’s space agency, JAXA, on the Lunar Cruiser, a vehicle designed for NASA’s Artemis program. Set to launch in 2029, the Lunar Cruiser will play a key role in lunar exploration. Toyota’s Chairman, Akio Toyoda, has pointed to the company’s growing focus on space, saying, “The future of mobility should not be limited to just Earth…or just one car company for that matter!”

With this new investment, Toyota and Interstellar aim to make space more accessible for everyone. Additional funding is expected in the second close of Interstellar’s Series F round, alongside further steps to strengthen the company’s governance. Woven by Toyota will appoint a director to Interstellar’s board to help guide its growth and solidify the alliance.

With this new investment, Toyota and Interstellar aim to make space more accessible for everyone. The first tranche of Interstellar’s Series F funding round closed on January 7, 2025, with Woven by Toyota’s ¥7 billion investment. Additional funding will also be expected in the second close of the Series F round. Furthermore, Woven by Toyota will appoint a director to Interstellar’s board, strengthening its corporate governance as the company scales its operations.

The Japanese spaceflight company has secured roughly ¥22.7 billion ($144 million) in funding across multiple rounds, including loans. Notable Japanese investors include SBI Group, NTT DOCOMO, and Resona Bank. For example, SBI Group contributed ¥3.1 billion ($21 million) during the Series E round in August 2024, which also saw participation from NTT DOCOMO to support Interstellar’s development of the ZERO orbital-class launch vehicle and satellite communication technologies.

Interstellar’s use of 3D printing and Toyota’s manufacturing skills will help Japan grow its space industry and launch more satellites. This partnership is a big step toward making rockets cheaper and easier to produce, helping Japan compete in the global space market.