Used primarily in the medical field as a mood stabilizer for treating bipolar disorder. It helps manage manic episodes and reduce the frequency and severity of mood swings. Additionally, it is employed in research settings to study lithium's effects on neurological conditions and cellular processes. In some cases, it serves as a dietary supplement to address lithium deficiencies. Its solubility in water makes it suitable for oral administration in liquid or tablet form.

As a high-purity chemical reagent, it is also utilized in laboratory applications as a source of lithium ions in biochemical and synthetic processes.