Joby Aviation has signed a letter of intent with Alatau Advance Air Group (AAAG) to supply eVTOL aircraft and related services in Kazakhstan, in a deal worth up to $250m.

This agreement, which involves pre-delivery payments, is supported by a memorandum of understanding between Joby and the Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan.

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The ministry has agreed to support the development of advanced air mobility in Kazakhstan by establishing regulatory protocols and infrastructure for air taxi operations.

Kazakhstan Deputy Prime Minister and Artificial Intelligence and Digital Development Minister Zhaslan Madiyev said: “Kazakhstan is taking a step into the future of innovative transportation.

“The purchase of electric eVTOL aircraft will mark an important milestone in the development of smart cities and the adoption of cutting-edge technologies.”

AAAG is engaged in the Alatau City development, a project spanning 340 square miles (mi2), identified as an initial deployment area for eVTOL air taxis in Central Asia.

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In addition to aircraft supply, Joby and AAAG plan to collaborate on the sourcing of essential materials, including titanium and rare earth elements from Kazakhstan, for use in the manufacturing process.

Joby CEO and founder JoeBen Bevirt said: “We are deploying our proven market-entry playbook in Kazakhstan by partnering with both the government and a strategic regional operator to accelerate our path to commercial operations.

“Kazakhstan is positioning itself to become a key hub for advanced air mobility and the expansion of Joby’s service into the Central Asia region.”

Joby Aviation is based in California and develops all-electric aircraft designed for urban passenger use.

The company’s strategy includes both direct operations of air taxi networks in global urban centres and supplying aircraft to external operators.

Recently, Joby Aviation began power-on testing of its first US Federal Aviation Administration (FAA)-conforming aircraft, marking the start of the final phase in the Type Certification process for its electric air taxi.

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