Vanadium(V) trichloride oxide is used as a catalyst in olefin polymerization reaction, especially for the production of ethylene-propylene rubber. It is also used to synthesis organovanadium compounds and as a mordant in dyeing. It acts as a precursor to prepare vanadium pentoxide, vanadyl dichloride and dioxovanadium monochloride. Further, it serves as a reagent and a strong oxidizing agent in organic synthesis.

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