China’s Suzhou CATH Energy Technologies has reaffirmed its support for Australia’s AVZ Minerals by releasing a promised US$20 million funding facility, despite mounting legal and political uncertainty surrounding the development of the Manono lithium project in the Democratic Republic of Congo (DRC).
AVZ said on Jan. 15 that it had received the full amount pledged last year by CATH, a move that signals the Chinese firm’s continued confidence in AVZ’s claim to the Manono deposit, one of the world’s largest known hard-rock lithium resources.
The Australian company maintains that it retains rights to develop the project, even though control of Manono remains contested following the termination of AVZ’s joint venture with Congolese state-owned miner Cominiere.
A cooperation agreement signed in January 2025 grants CATH several options should AVZ eventually succeed in securing its legal claim to the project. Under the deal, the Chinese firm would be entitled to take 100% of Manono’s lithium output for five years, or until funding provided by CATH is fully repaid. It would also have the option to acquire an indirect 30.5% stake in the project.
Manono has become a focal point in the global scramble for lithium, a key component in electric vehicle batteries and renewable energy storage systems.
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AVZ carried out exploration at Manono for several years under a joint venture with Cominiere, before the Congolese company terminated the partnership and in 2023 entered into a new agreement with China’s Zijin Mining to develop the deposit.
AVZ has challenged those changes through multiple arbitration and court cases, arguing that its rights were unlawfully stripped. No final ruling has yet been issued, leaving the project’s ownership unresolved.
The uncertainty has attracted additional interest. In 2025, KoBold Metals, a California-based mining technology startup backed by prominent U.S. investors, emerged as a potential new player at Manono as relations between Washington and Kinshasa improved and the United States encouraged greater American participation in Congo’s mining sector.
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In May 2025, KoBold and AVZ announced a framework agreement under which AVZ would receive compensation in return for dropping its claims to the deposit, potentially clearing the way for development. However, negotiations to finalise the deal collapsed, prompting AVZ to resume its legal challenges after temporarily suspending them during talks.
KoBold has since maintained its interest in Congolese lithium and later signed a separate framework agreement directly with the Congolese government relating to Manono. Neither Kinshasa nor KoBold has disclosed details of the arrangement.
AVZ said it would continue to defend its interests through legal channels while remaining open to discussions on a commercial resolution.
Despite the competing claims, progress on the ground remains limited. Zijin Mining has said production at Manono could begin in 2026, but has released few updates on construction or financing over the past year.
AVZ has also faced scrutiny at home. In November 2025, Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), launched legal proceedings against the company, alleging it failed to adequately inform investors about operational and regulatory challenges in the DRC.
The Congolese government has offered little clarity on its own plans for Manono. In December 2025, authorities signed an agreement with the United States to provide American investors with a list of mining projects open to potential development.
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Mines Minister Louis Watum said the list would be transmitted to U.S. officials this week, but did not indicate whether Manono would be included. Under the agreement, projects facing unresolved international legal disputes are not expected to be proposed.
With legal battles continuing and rival interests vying for control, the future of Manono remains uncertain. AVZ has indicated that any resolution may not involve its return to operating the project, saying it is pursuing “a commercial solution for shareholders” as the standoff drags on.
