Contact binaries are fairly common. Expected to make up about 10-15% of NEOs. My layman's understanding of how Kuiper object contact binaries develop is mutual capture during the early life of the solar system and angular momentum decay until they come into contact.
alejohausner|7 years ago
dandelany|7 years ago
Another is the "YORP Effect". Sunlight falling on an asteroid produces a slight thermal radiation pressure (push). If, due to asymmetries in asteroid shape/albedo, the net radiation pressure force is not aligned with the asteroid's center of mass, it will produce a torquing force which will cause the asteroid to spin faster (or slower) over time. Applying the idea of YORP Effect to binary asteroids yields the "BYORP [Binary YORP] Effect", by which the orbital dynamics of the binary system are modified by this asymmetric radiation pressure over time, in a way that either pushes them together into a contact binary or apart into two unbound asteroids.
It's even hypothesized that some asteroids may be in a binary/contact-binary cycle on long timescales! There are solutions to the above in which the BYORP effect causes a loss of angular momentum in a binary pair, causing them to merge into a contact binary - but the contact binary may settle into a state where the YORP Effect actually causes the newly merged asteroid to spin faster, eventually flinging them apart due to centripetal forces... back into a binary state where the BYORP Effect may again cause them to merge someday.
Recommended reading: https://arxiv.org/abs/1010.2676