Tesla, Inc. is reportedly looking for his own lithium mining company, and lithium producers are losing money on their shares.

Albemarle Corp. Shares fell more than 4 per cent on Tuesday, after falling nearly 10 per cent on Friday. Livent Corp. Shares fell for the third day in a row on Tuesday, falling more than 3 per cent, after falling 9 per cent on Friday. Piedmont Lithium, the leading US listed lithium producer, fell more than 2 per cent after falling 12 per cent on Friday.

In a report last Friday night, Tesla, Inc. was considering talking to Canadian miner Sigma Lithium Corp. Launch a potential acquisition. Sigma Lithium Corp is one of the "multiple mining options" being explored, the report said. Tesla, Inc. has been eager to mine his own metal, a key component of electric car batteries.

In September, the electric car maker submitted documents about building a lithium smelter in Texas, which will increase Tesla, Inc. 's business in the state. It will also follow the advice of Elon Musk, its chief executive, who likens lithium mining to "printing money".

The Financial Times reported in October that Tesla, Inc. had held talks to buy a stake in commodity giant Glencore, but the talks failed.

The price of lithium peaked about a year ago and has since fallen from its highs. Benchmark Mineral Intelligence's lithium price index is down 1.7 per cent this year, but up 34 per cent from a year earlier. The index is related to the weighted average price of lithium carbonate and lithium hydroxide, the two main lithium chemicals.

Tesla, Inc. said the proposed lithium plant, close to the port of Corpus Christi, would be the first of its kind in North America. In an application for tax relief submitted to the Texas Audit Office, Tesla, Inc. said Tesla, Inc. 's construction could reach "commercial operation" by the end of 2024.

Last month, General Motors Co announced to Canadian mining company Lithium Americas Corp. Invest 650 million US dollars

Emanuel Rosner, an analyst at Deutsche Bank, said in a report that the other news that caused the shares of lithium miners to fall was that Ningde Times, a Chinese battery maker, reportedly offered battery discounts to local electric car manufacturers to "win more orders at a time when lithium prices are slowly falling".

Despite recent share price declines, the three lithium miners have outperformed the broader index this year and so far this year. Over the past 12 months, Albemarle and Piedmont have risen 30 per cent, while Livent has risen slightly more than 3 per cent. By contrast, the s & p 500 is down about 8% over the same period.

So far this year, the stock has still performed well, with Albemarle up 14 per cent and Piedmont up 43 per cent. By contrast, the s & p 500 is up about 5%.