Lithium compounds are used in some drugs known as mood stabilizers. Lithium niobate is used in radio transmitters in cell phones. Some lithium compounds are also used in ceramics. Lithium chloride can absorb water from other things. Some lithium compounds are used to make soap and grease. Lithium carbonate is used as a drug to treat manic depression disorder. Lithium carbonate is used for the treatment of bipolar disease and other mental illness conditions.