Shares of Albemarle (ALB), Arcadium Lithium (ALTM), and Sociedad Quimica y Minera, or SQM (SQM), jumped Friday following a report that mining giant Rio Tinto (RIO) could be looking to buy a company in the lithium sector.

The Australian wrote, "Rio Tinto may join BHP (BHP) in a big acquisition and some believe that a major deal in the lithium space may now not be too far away."

One of the world's biggest mining companies, Rio Tinto is better known for its copper, iron ore, and diamond extraction. However, it does produce lithium, which it says "is part of our portfolio of materials essential to a low-carbon future."

Lithium Helps Power EVs, Laptops, Cellphones

Lithium is a key ingredient in batteries used to power electric vehicles (EVs), as well as personal electronics such as laptops and cellphones. 

Albemarle is the top lithium producer. However, it has struggled lately because of the tumbling price of lithium, which was driven lower by falling demand for EVs. In addition, Chief Executive Officer (CEO) Kent Masters has complained about China's dominance in the market, and warned Western nations they need to take steps to end it or risk losing supplies.