What Happened
New Entrants Challenge Legacy Contractors With Innovative Supply Chains
Defense tech startups are repurposing automotive chips and pipes used in fracking to deliver weapons to the Pentagon faster and at lower cost. Soaring demand for rocket motors has spurred new thinking about supply chains, with startups like Castelion and Anduril using innovative production methods to challenge legacy contractors. The US has plowed through over 50,000 rockets, missiles, and other projectiles since 2022, driving demand for rocket motors. According to Reuters, the Pentagon is setting aside $53 billion and simplifying procurement rules to increase critical missile and rocket production.