Lithium citrate hydrate is primarily used in the medical field as a mood stabilizer for the treatment of bipolar disorder. It helps to manage and reduce the frequency of manic episodes and depressive phases, promoting emotional balance. Additionally, it is sometimes prescribed for conditions like schizoaffective disorder and severe depression. The compound works by altering sodium transport in nerve and muscle cells, which influences neurotransmitter activity and helps regulate mood. It is often administered in oral form and requires careful dosage monitoring to avoid potential side effects. Beyond psychiatric applications, it has limited use in other industries due to its specific therapeutic properties.