A 50% rise in the price of a downtrodden lithium producer has boosted investor hopes that a revival in the battery metal is possible after two grim years

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.

Arcadium Lithium shares jumped in premarket trading Monday after it confirmed that it has been approached about a potential acquisition by mining giant Rio Tinto.