Toyota Takes Aim at SpaceX With Investment in Rocket Startup (1)

Toyota Motor Corp. is investing in a Japanese startup that aims to mass produce lightweight rockets and someday vie with big players for a slice of the growing commercial space industry.

Interstellar Technologies Inc. announced Tuesday that Toyota is contributing ¥7 billion ($44 million) through its subsidiary and research unit, Woven by Toyota, and the carmaker will gain a seat on the startup’s executive board as a result.

It’s the latest sign of progress in the Japanese government’s push to nurture the country’s private space sector. But it’s still a challenge for fledgling companies to keep up in a ...