By Ernest Scheyder and Clara Denina (Reuters) -Rio Tinto has been holding talks to buy lithium miner Arcadium, three sources with direct knowledge of the negotiations said, a deal that would make Rio the third-largest producer of the electric vehicle battery metal.

Arcadium Lithium (ALTM), and Sociedad Quimica y Minera, or SQM (SQM), jumped Friday following a report that mining giant Rio Tinto (RIO) could be looking to buy a company in the lithium sector.The Australian wrote,

Rio Tinto in talks to acquire Arcadium Lithium, potentially becoming the third-largest producer of EV battery metal.

Potential major lithium acquisition by Rio Tinto Group has boosted industry stocks despite recent market decline. Explore more details here.

For information, Albemarle Corporation is a leading global producer of lithium, a key component in electric vehicle batteries, and is also a major player in the production of catalysts used in refining and petrochemical processes. While Arcadium Lithium is a Canadian exploration and development company focused on lithium projects in North America.

Rio Tinto Plc is said to be in talks to buy Arcadium Lithium Plc, in a deal that would value the smaller miner between $4 billion to $6 billion, Reuters reported, citing unnamed sources.

The Australian reported that Rio Tinto might be looking at M&A in the lithium space. That sent shares of Albemarle, Arcadium, and SQM higher.