Sigma Lithium spikes 21% on report Tesla is considering a buyout of the Canadian battery-metals miner

• Sigma Lithium shares jumped Tuesday after Bloomberg reported that Tesla is considering a buyout.

• Shares of the Canadian mining firm surged as much as 20%.

• Discussions are in the early stages and they may not result in a deal, Bloomberg said.

Shares in Sigma Lithium sharply jumped Tuesday following a report that Tesla is thinking about buying the Canadian miner at a time of increasing demand for the key metal used in the manufacture of electric vehicle batteries.

Tesla has been discussing a possible bid for the company with potential advisers, Bloomberg News reported late Friday. Tesla, led by Elon Musk, is looking at multiple mining options as the company explores its own refining, an unnamed source with knowledge of the matter told Bloomberg.