Lithium hydroxide is used mainly to produce lubricating grease that can withstand extreme temperature and load conditions. Approximately 70% of lubricating greases produced in the world contain lithium. Lithium hydroxide is also used in batteries and colorants.

SQM produces lithium hydroxide in its Salar del Carmen plant, close to Antofagasta, Chile, from lithium carbonate that is produced at the same plant.