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 is in talks to buy lithium producer Arcadium Lithium, pursuing a deal that could make the Anglo-Australian miner the third-largest producer of the electric-vehicle battery metal. Rio's Rincon project in Argentina is due to start producing later this year,

Rio Tinto shares are trading lower by 4.4% Tuesday afternoon. Shares of copper and iron ore companies are trading lower amid China stimulus uncertainty.