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 (NYSE:ALTM) +38.3% post-market Friday after Reuters reports Rio Tinto (RIO) is in talks to buy the lithium miner, in a deal that would make Rio the third-largest producer of the electric vehicle battery metal.

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.Most Read from BloombergWhat Do US Vehicle Regulators Have Against Tiny Cars?

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

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.