Datavault AI's Investments into Mineral Supply Chains

A mining procurement platform that combines blockchain technology with physical mineral supply chains could reshape how mining operations secure financing and manage offtake agreements.

Patriot Strategic Metals and Datavault AI have proposed a partnership to build what they term a Strategic Materials Acquisition Platform.

The platform would link mining interests with digital settlement systems to handle financing and distribution of copper, lithium and cobalt.

According to the International Energy Agency, critical minerals have emerged as a frontline issue in safeguarding global energy and economic security in a world of high geopolitical tensions.

Mining operations and offtake agreements

The proposed arrangement explicitly covers offtake agreements. In mining, an offtake agreement is a contract between a resource producer and a buyer, where the buyer agrees to purchase a specified volume of future mineral output.

Patriot Strategic Metals operates an integrated metals platform that includes mining interests, long-term offtake agreements, refining operations, strategic inventories, commodity trading and supply chain operations. The partnership would add real-world asset tokenisation technology to this mining infrastructure.

Real-world asset conversion turns physical or traditional financial assets into digital tokens using blockchain technology. In this context, it functions as a digital tracking system for critical minerals moving through the supply chain.

John K. Park, Managing Member of Patriot Strategic Metals, says: "Our partnership with Datavault AI provides the technological foundation to modernise the financing and movement of critical minerals through RWA infrastructure, digital settlement and institutional trade finance."

Supply chain risks for mining

According to the International Energy Agency, China accounted for around 60% of global mining output in 2024. China also dominates the midstream and downstream supply chains for batteries globally, with shares of 80% or more in many key areas.

The agency says growing geopolitical tensions, marked by a series of export controls on key materials and technologies, have heightened supply risks. The platform could help mining operations and their buyers secure alternative supply arrangements.

Critical minerals like copper, lithium and cobalt are in increasing demand owing to use in AI infrastructure, semiconductor manufacturing, defence, robotics and electrification. The concentration of mining output and processing capacity in one region creates potential vulnerabilities for industries dependent on these materials.

The agreement is intended to support the acquisition, storage, transportation, certification, insurance and distribution of eligible strategic minerals from mining sources. The ecosystem will function through the International Elements Exchange.

Financial structure and mining interests

The companies say the proposed partnership contemplates an initial Phase I platform development programme of up to US$700m supporting institutional trade finance, digital settlement, technology integration, compliance and platform deployment. Within the proposed Phase I framework, up to approximately US$62m is allocated for Datavault AI-related technology integration.

The partnership is expected to support Patriot Strategic Metals's procurement platform, including an arranged revolving procurement facility of up to US$20bn. Datavault AI would participate in 25% of net distributable platform profits.

John adds: "Together, we are creating a scalable platform designed to strengthen resilient supply chains for artificial intelligence, semiconductor manufacturing, defence, energy and advanced manufacturing while positioning the US as a leader in strategic metals infrastructure."

Earlier this year, Datavault AI expanded its partnership with IBM and its watsonx platform, aimed at tokenising data when it is created and transforming raw inputs into authenticated, tradable digital property in real time.

Digital infrastructure for mineral procurement

Nathaniel T. Bradley, Chief Executive Officer of Datavault AI, says: "This strategic partnership brings together physical strategic assets and on our institutional grade cyber secure digital infrastructure. By combining PSM's critical minerals platform with Datavault AI's patented RWA technology, we are building a framework to modernise how strategic commodities are financed, settled and managed."

According to Deloitte, companies can steer innovation with the transformative potential of gen AI, reimagining operations, making sourcing and procurement smarter and more proactive while setting new efficiency standards. The companies say their proposed partnership is intended to create diversified recurring revenue opportunities through multiple institutional platform services.

The agreement between Datavault AI and Patriot Strategic Metals seeks to provide mining operations and mineral buyers with an alternative procurement route. The platform would combine physical mining assets with digital settlement capabilities to handle mineral transactions from extraction through distribution.