Interstellar Reached Agreement on Capital and Business Alliance with Woven by Toyota

 Interstellar Technologies Inc. committed to addressing global challenges through space transportation and utilization, is excited to announce a strategic capital and business alliance with Woven by Toyota, Inc. (“Woven by Toyota) ”, a Toyota Group company that is pioneering the transformation of mobility. As the lead investor, Woven by Toyota will contribute approximately ¥7 billion JPY ($44.3 million USD; 1 USD=JPY ¥158) by the first close of Series F. Additional funding will be also expected in the second close of Series F. Furthermore, Woven by Toyota will provide a director to strengthen our corporate governance.

The global demand for small satellite launches has surged nearly 20-fold, from 141 launches in 2016 to 2,860 in 2023 (*1), driven by the expansion of the private space business, the growing importance of national security, and the emergence of new applications such as satellite constellations. In 2023, the U.S. conducted 116 launches and China 63, significantly boosting their space transportation capabilities. In contrast, Japan conducted just three launches (*2), highlighting the need for growth in domestic launch capacity. The Japanese government has set a target to secure a domestic launch capacity of around 30 launches annually by the early 2030s, through both core and private rockets, to meet the growing demand for launches both domestically and internationally (*3). Achieving this will require a structural transformation of the domestic space industry, shifting from one-off production to scalable manufacturing with a robust supply chain. Interstellar aims to leverage automotive industry expertise, including Toyota’s production methods, to transition rocket manufacturing into a high-quality, cost-effective, and scalable process.

Since 2020, Interstellar has been collaborating with Toyota Motor Corporation through personnel exchanges, with a total of 11 employees being seconded from Toyota, including those from Toyota Motor Hokkaido, Inc. and Toyota Auto Body Co., Ltd.. This business alliance is the result of ongoing efforts to build a stronger alliance and focuses on key areas such as cost reduction, lead time shortening, and the establishment of a mass production system for rockets. Together, we will work on strengthening the supply chain and corporate governance, all with the goal of advancing rocket mass production.

Accelerating the Vertical Integration of Rocket and Satellite Communications Business

Interstellar is the first company in Japan to pursue a vertically integrated business model combining rockets and satellite communications. The satellite communications sector, which requires a high volume of launches, can reach its full potential when paired with a rocket company, as demonstrated by SpaceX in the U.S., which has grown to a market capitalization of $350 billion USD through its satellite-based internet service, "Starlink." The satellite communications technology that Interstellar is developing enables direct connections with ground devices, such as smartphones, offering high-speed, high-capacity next-generation broadband communication. We are accelerating our efforts to become a comprehensive space infrastructure company. This will bring us closer to realizing our vision of ‘a future where everyone can access space.’

 Mr. Hajime Kumabe, CEO of Woven by Toyota: Toyota continues its transformation into a mobility company by embracing challenges in land, sea, and air mobility. Now, we are excited to collaborate with Interstellar Technologies on the mass production of rockets. With a mission to realize a sustainable future for Earth through space exploration, and having previously engaged with Toyota Group talent, Interstellar Technologies is a company that is in close alignment with our own vision for the future of movement. This business alliance will leverage the Toyota Group’s extensive manufacturing capabilities and combine our expertise to advance rocket production and further drive mobility transformation.

Mr. Takahiro Inagawa, CEO of Interstellar Technologies: 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 are now able to strengthen our collaboration to the next level.