How PSM & Datavault are Securing the Mineral Supply Chain

Datavault AI has proposed a strategic partnership with Patriot Strategic Metals to build a Strategic Materials Acquisition Platform.

The initiative centres on institutional digital infrastructure designed to support financing, tokenisation, settlement and lifecycle management of strategic mineral assets, with clear implications for how critical minerals move through global supply chains.

Supply risk and mineral demand

Copper, lithium and cobalt are in increasing demand due to their use in AI infrastructure, semiconductor manufacturing, defence, robotics and electrification. This demand growth places additional pressure on sourcing networks that are already exposed to geopolitical strain.

According to the International Energy Agency (IEA), critical minerals have emerged as a frontline issue in safeguarding global energy and economic security in a world of high geopolitical tensions. The agency notes that growing geopolitical tensions, marked by a series of export controls on key materials and technologies, have heightened supply risks.

According to the IEA, China accounted for around 60% of global mining output in 2024. China also dominates the midstream and downstream battery supply chains, holding shares of 80% or more in many key areas, according to the agency.

This concentration could mean that buyers of critical minerals face exposure to a narrow set of geographic and political risks. The proposed platform is intended to address this by supporting acquisition, storage, transportation, certification, insurance and distribution of eligible strategic minerals.

Platform structure and technology

The proposed partnership is expected to combine Patriot Strategic Metals' integrated strategic metals platform with Datavault AI's real-world asset tokenisation technology, AI-enabled digital infrastructure, blockchain-based settlement capabilities and enterprise software.

Real-world asset (RWA) conversion turns physical or traditional financial assets into digital tokens, using blockchain technology similar to that behind cryptocurrency such as Bitcoin. In this case, it is proposed as a digital tracking system for critical minerals moving through the supply chain.

Patriot Strategic Metals' integrated metals platform includes mining interests, long-term offtake agreements, refining, strategic inventories, commodity trading and supply chain operations. An offtake agreement, in mining, is a contract between a resource producer and a buyer, where the buyer agrees in advance to purchase a specified volume of future mineral output.

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."

Storage, transport and offtake terms

The companies state explicitly that the agreement covers offtake agreements alongside broader supply chain operations. This could mean the platform is designed to give chief procurement officers a tool for shoring up supply chain resilience in critical minerals amid instability.

The agreement is also intended to support acquisition, storage, transportation, certification, insurance and distribution of eligible strategic minerals. Each of these functions touches a distinct point in the physical movement of minerals from extraction through to industrial use.

Certification and insurance provisions could show an attempt to build verifiable, auditable trails for minerals as they pass between parties. This may matter to buyers in defence and semiconductor sectors, where provenance requirements are becoming more common.

Storage and transportation elements suggest the platform intends to track physical custody of minerals, not just financial ownership. Combined with tokenisation, this pairing of physical and digital record-keeping is central to the companies' stated aims.

Financing the platform

The companies say the proposed partnership contemplates an initial Phase I platform development programme of up to US$700m. This sum is intended to support institutional trade finance, digital settlement, technology integration, compliance and platform deployment.

Within the Phase I framework, up to approximately US$62m is allocated for Datavault AI-related technology integration. Earlier this year, Datavault AI expanded its partnership with IBM and its watsonx platform, aimed at tokenising data at the point of creation and turning raw inputs into authenticated, tradable digital property in real time.

The partnership is also expected to support Patriot Strategic Metals' broader procurement platform, which includes an arranged revolving procurement facility of up to US$20bn. According to the companies, this ecosystem will function through the International Elements Exchange.

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."

Revenue and distribution model

The companies say the proposed partnership is intended to create diversified recurring revenue opportunities through multiple institutional platform services. Datavault AI would participate in 25% of net distributable platform profits under the terms described.

While the arrangement is framed around reshaping minerals procurement, it also carries a direct commercial return for the technology provider through software transactions. This dual purpose, resilience infrastructure paired with profit share, runs through the companies' public statements on the deal.

According to Deloitte, companies can use gen AI to reimagine operations, making sourcing and procurement smarter and more proactive while setting new efficiency standards. The Datavault AI and Patriot Strategic Metals agreement could be read as an application of this thinking to the specific case of critical mineral supply chains.

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."