In July 2025, a high-stakes dispute erupted over the Manono lithium deposit in the Democratic Republic of Congo (DRC), one of the world’s largest untapped sources of lithium. The conflict centers around AVZ Minerals, an Australian company backed by Chinese battery manufacturer CATL, which holds an existing claim over a key portion of the site. AVZ accuses the DRC government of breaching international arbitration orders by signing a new agreement with U.S.-aligned KoBold Metals, a tech-driven exploration firm backed by high-profile investors. This escalating legal and diplomatic clash has placed the Manono project at the center of a broader geopolitical contest between Chinese and Western interests in the global race for critical minerals.
KoBold Metals, known for its use of artificial intelligence in mineral exploration, secured a government- backed agreement to explore over 1,600 square kilometers of the Manono region. The DRC administration welcomed the partnership as part of its new critical minerals strategy and indicated its intent to fast-track permits and applications before the end of the month. In response, AVZ has expanded its legal battle, arguing that the new deal violates interim rulings from international arbitration tribunals and undermines investor protections. As both parties escalate their claims, the future of the Manono project remains uncertain, with legal, financial, and diplomatic implications at stake.
From a policy perspective, the Manono dispute highlights urgent challenges in mineral governance, including the need for legal clarity, institutional consistency, and balanced international engagement. More fundamentally, the situation underscores that strategic mineral development cannot succeed without legitimacy on the ground. The social license to operate—grounded in local consultation, environmental responsibility, and equitable benefit-sharing—must be treated as a core condition for any investment, regardless of global alliances or technological promise. Without local trust and procedural fairness, even the most strategic mineral deals risk becoming flashpoints for conflict and reputational damage.