AVZ Minerals said on Jan. 15 it had received the full amount promised last year by its partner Suzhou CATH Energy Technologies. The Chinese company provided a $20 million funding facility to the Australian group, which says it holds the rights to develop the Manono lithium project in the Democratic Republic of Congo. The payment signals CATH’s continued support for AVZ despite growing uncertainty over the project’s future.

A deal signed in January 2025 gives CATH several rights if AVZ ultimately succeeds in securing its claim to Manono. These include the option to take 100% of lithium output for five years, or until the expenses facilitated by CATH are repaid. CATH would also be able to acquire an indirect 30.5% stake in the project.

Rival suitors

Manono is the largest lithium deposit discovered so far in the DRC. AVZ carried out exploration work there for several years under a joint venture with the Congolese state-owned miner Cominiere. Cominiere later ended the partnership and in 2023 teamed up with China’s Zijin Mining to develop the same project. AVZ has launched several cases in international courts to challenge the changes in ownership, but no final ruling has been made.

In this uncertain context, another player emerged a few months ago: KoBold Metals. As ties improved between Kinshasa and Washington and the United States pushed for new investments in the Congolese mining sector, the California-based startup expressed interest in Manono.

In May 2025, KoBold and AVZ announced a framework agreement aimed at moving the project forward. Under the terms outlined, AVZ would receive compensation in exchange for dropping its claims to the deposit. However, talks to finalize the deal failed. Consequently, AVZ, which had temporarily suspended its legal challenges during the negotiations, has since resumed its court proceedings.

KoBold has since maintained its interest in Congolese lithium, signing another framework agreement, this time with the Congolese government, on developing Manono. While Kinshasa and the U.S. company have not detailed their plans for the deposit, AVZ responded by saying it would continue to defend its interests while remaining open to dialogue.

Uncertainty persists

Developments over the past year have done little to clarify the future of Manono or which companies will ultimately be able to develop the deposit. Zijin has said production could start in 2026, but has provided few updates since then on the progress of mine construction.

AVZ has also come under scrutiny in Australia. In November 2025, the Australian Securities and Investments Commission (ASIC)—the country's stock market regulator—launched legal proceedings against the company, accusing it of failing to properly inform investors about problems encountered in the DRC.

The Congolese government has also provided few details on how it plans to turn Manono into the country’s first lithium mine. In December 2025, authorities signed an agreement with Washington to share with U.S. investors a list of mining projects that could be developed with American capital.

Mines Minister Louis Watum said the list would be sent to U.S. authorities this week, without saying whether Manono would be included. That appears unlikely, as the agreement with Washington states that no project should be added if it would conflict with international legal obligations. The coming months could prove decisive in resolving the disputes holding back Manono’s development. AVZ’s recent statements suggest any outcome may not involve its return to the project, as it says it is seeking “a commercial solution for shareholders.”

Emiliano Tossou