TechnologyJuly 9, 2026
offtake
/ˈɒfteɪk/
Definition
A formal contractual agreement in the mining industry where a buyer commits to purchasing a specific quantity of a resource before it has been extracted or processed.
Etymology
The word is a compound of 'off' and 'take,' dating back to the late 19th century in engineering to describe the drawing off or removal of a substance. In a financial context, it shifted to mean taking the output of a production process for commercial use.
In the news
In the article, Patriot Strategic Metals uses long-term offtake agreements as a core part of its business model to secure future supply. These contracts are essential for stabilizing the supply chain of critical minerals like copper and lithium.
PSM & Datavault AI: US$700m Mineral Supply Chain Tech
Read the full article ↗Procurement Magazine