Lithium carbonate is primarily used in the treatment of bipolar disorder and manic episodes, helping to stabilize mood swings and reduce the severity of manic symptoms. It is also employed as a maintenance therapy to prevent recurrent episodes of mania and depression in patients with bipolar disorder. Additionally, it is used to adjust lithium levels in patients with low serum lithium and in the treatment of hyperthyroidism to reduce thyroid function.

In industrial applications, it serves as a key component in the production of lithium-ion batteries, which are widely used in electronic devices, electric vehicles, and renewable energy storage systems. Additionally, it is utilized in the manufacturing of glass and ceramics, where it enhances thermal stability and reduces melting temperatures.

In the field of metallurgy, lithium carbonate is used as a flux to improve the efficiency of aluminum smelting processes. It also finds application in air purification systems, where it helps to absorb carbon dioxide.