Create text file and upload it to document library using REST API with JavaScript

Yes, its possible.

Try and modify the below code. Fill the content with data from your lists:

var content = "Hello, this text is inside the file created with REST API";
var digest = $("#__REQUESTDIGEST").val();
var url = _spPageContextInfo.webAbsoluteUrl + "/_api/web/getfolderbyserverrelativeurl('/sites/test/Shared Documents')/Files/add(overwrite=true, url='test.txt')";
jQuery.ajax({
    url: url,
    type: "POST",
    data: content,
    headers: {        
        "accept": "application/json;odata=verbose", 
        "X-RequestDigest": digest       
    },
    success: function(data){
        console.log(data);
    },
    error: function(data){
        console.log(data);
    }
});