Joby Aviation builds out defense business with $500M acquisition

Joby Aviation, the electric vertical takeoff and landing aircraft maker, has acquired Resonant Sciences for $500 million to establish its defense operations. The deal marks Joby's expansion beyond commercial air taxi ambitions into the defense sector.

Resonant Sciences brings specialized expertise in autonomous systems and defense applications. The acquisition positions Joby to compete for government contracts and military programs, a revenue stream that complements its civilian eVTOL ambitions. Defense spending offers faster capital recovery and longer contract cycles than consumer markets.

Joby has faced scrutiny on its path to commercial launch since going public via SPAC in August 2023. The company burned through cash developing its six-passenger eVTOL aircraft and securing regulatory approval from the FAA. Adding a defense revenue stream diversifies income sources while the commercial business scales.

The Resonant Sciences purchase reflects a broader trend among eVTOL makers seeking non-traditional revenue. Companies like Archer Aviation and Lilium have also explored defense partnerships. For Joby, the $500 million outlay represents a significant commitment to defense capabilities, suggesting the company views this segment as core to long-term strategy rather than a side project.

Joby still pursues its core mission of launching air taxi services in key markets. The company operates under strict FAA oversight and must demonstrate safety over extended operational periods before commercial expansion accelerates. Defense work provides revenue and development support during this validation phase.

The acquisition also signals Joby's confidence in its balance sheet despite burning roughly $1 billion annually. The company raised capital through its SPAC merger and subsequent offerings. Investing $500 million in Resonant Sciences indicates management believes defense contracts will generate returns faster than waiting for consumer air taxi adoption to scale.

The eVTOL market remains crowded and uncertain. Joby competes with Archer,