PSM & Datavault AI: US$700m Mineral Supply Chain Tech

Datavault AI announced a proposed strategic partnership with Patriot Strategic Metals (PSM) to jointly develop what they call a Strategic Materials Acquisition Platform.

The companies describe it as an institutional digital infrastructure platform to support the financing, tokenisation, settlement and lifecycle management of strategic mineral assets.

Critical minerals like copper, lithium and cobalt are in increasing demand owing to use in AI infrastructure, semiconductor manufacturing, defence, robotics and electrification.

The IEA says that in a world of high geopolitical tensions, critical minerals have emerged as a frontline issue in safeguarding global energy and economic security.

The agreement is intended to support the acquisition, storage, transportation, certification, insurance and distribution of eligible strategic minerals.

Datavault AI and Patriot Strategic Metals

The companies say the proposed partnership is expected to combine PSM’s integrated strategic metals platform with Datavault AI’s real-world asset (RWA) tokenisation technology, AI-enabled digital infrastructure, blockchain-based settlement capabilities and enterprise software platform. 

RWA converts physical or traditional financial assets into digital tokens, using the same blockchain technology as cryptocurrency like Bitcoin. In this context, it is used as an advanced digital tracking system for critical minerals.

PSM’s integrated metals platform includes mining interests, long-term offtake agreements, refining, strategic inventories, commodity trading and supply-chain operations.

John K. Park, Managing Member of PSM, 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.”

The financial deal 

The companies say the proposed partnership “contemplates” an initial Phase I platform development program of up to US$700m supporting institutional trade finance, digital settlement, technology integration, compliance and platform deployment. 

Within the company's proposed 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 when it is created and transforming raw inputs into authenticated, tradable digital property in real-time. 

The mineral supply chain

The IEA says growing geopolitical tensions, marked by a series of export controls on key materials and technologies, have heightened supply risks. 

The agreement covers supply chain operations, but the companies explicitly state it 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. 

As such, the platform is slated to help CPOs shore up supply chain resilience in critical minerals amid increasing global instability, with much of the world’s mineral supply centred around China, and growing demand from a variety of fast expanding industries like semiconductors and electric vehicles. 

The IEA says 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.

Procurement platform

The partnership is expected to support PSM’s broader procurement platform, including an arranged revolving procurement facility of up to US$20bn. The 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.”

The companies say its proposed partnership is intended to create “diversified recurring revenue opportunities” through multiple institutional platform services. 

While the deal looks to reshape minerals procurement, it is also focussed on netting a profit on software transactions for the provider. Datavault AI would participate in 25% of net distributable platform profits. 

Reshaping the mineral market

AI and new technologies are increasingly reshaping the procurement function. Deloitte says that companies can steer innovation with the transformative potential of generative AI, reimagining operations, making sourcing and procurement smarter and more proactive while setting new efficiency standards.

The agreement between Datavault AI and PSM seeks to reshape how minerals are sourced. Nathaniel T. Bradley, CEO 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.”