Rio Tinto is in talks to buy lithium producer Arcadium Lithium, both companies confirmed on Monday, with the global miner pouncing following a slump in prices for the ultralight metal essential to the world's shift to clean energy.

The proposed deal would make Rio Tinto one of the world’s largest lithium producers and is the latest sign of consolidation in the global mining industry. Philadelphia-based Arcadium Lithium currently has a market capitalisation of $3.

Global mining giant Rio Tinto PLC has expressed interest in buying Arcadium Lithium PLC, both companies confirmed Sunday.

Mining giant Rio Tinto is in talks to buy New York-listed Arcadium Lithium, its latest attempt to establish a foothold in the fast-growing market for a critical mineral used to power electric cars.

Rio Tinto, has made an approach to buy lithium producer Arcadium Lithium, the two parties said in separate statements on Monday, without revealing any financial details. Rio's approach to Arcadium comes as miners are eager to secure supplies of critical minerals needed to power the global energy transition and comes after weeks of speculation over the deal.