Defense firms Aeon Industrial and X-Bow Systems are teaming up to develop, test and make tactical missiles.

https://bit.ly/4gggAqZ\r\n\r\nWhy it matters: It's a pair of smaller defense-tech companies proactively working on problems — munitions production and solid-rocket motor diversity — plaguing the Pentagon.\r\n\r\n”It really represents a shift in how the defense industrial base needs to operate,” Maureen Gannon, X-Bow's chief revenue officer, told Axios.\r\n\r\nDriving the news: The companies inked a memorandum of understanding on the sidelines of the Fed Supernova event last month.\r\n\r\nZoom in: Aeon and X-Bow (pronounced crossbow) are collaborating on the former's Zeus, a system that packs an explosive punch against people, cover and armor.\r\n\r\nThey are also exploring other ”missile and munition designs” for joint development.\r\n\r\nWhat they're saying: ”Zeus represents the first major advance in tactical weapon systems in decades,” Aeon CEO Naweed Tahmas told Axios. ”We're proud to partner with X-Bow to expand its capability and ensure those on the front line can out-maneuver and win. Together, we will deliver true magazine depth.”\r\n\r\nOf particular interest, he added, is arming ”the thousands of manned and autonomous platforms coming online every day, from ground vehicles and surface vessels to drones.”\r\n\r\nInside the room: Conversations between Aeon and X-Bow, both in Texas, kicked off months ago. The latter's energetics campus in Luling will play an important role in the relationship.\r\n\r\nZoom out: The companies made their own, separate headlines this year.\r\n\r\nAeon was named to the Black Flag 100 list and announced work with the Army Applications Laboratory.\r\nX-Bow raised $105 million and was fast-tracked by Lockheed Martin as an independent supplier of solid-rocket motors and other services.