(S)-2,2'-diiodo-1,1'-binaphthalene is primarily used in asymmetric synthesis and catalysis, particularly in the development of chiral ligands for transition metal complexes. These complexes are essential in enantioselective reactions, such as hydrogenation, carbon-carbon bond formation, and other stereospecific transformations. Its rigid binaphthyl backbone and iodine substituents make it a valuable scaffold for designing catalysts that induce high enantioselectivity in organic synthesis. Additionally, it finds applications in materials science, where its chiral structure is utilized in the development of optically active polymers and liquid crystals.