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.

Rio boss Jakob Stausholm has given investors every reason to believe reports that a lithium deal is imminent. No Rio Tinto shareholder should be surprised if a big lithium acquisition emerges this week from the takeover speculation based on the trail of breadcrumbs laid out by Rio chief Jakob Stausholm.

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