Used in the production of specialty optical fibers and laser materials due to its ability to enhance the performance of holmium-doped amplifiers and solid-state lasers. It serves as a precursor in the synthesis of other holmium compounds used in nuclear reactors as neutron absorbers. Also employed in research settings for developing luminescent materials and upconversion phosphors, which have applications in bioimaging and display technologies. Its stability at high temperatures makes it suitable for use in fluoride-based glass systems and ceramic coatings.