Lithium aluminum hydride is used as a reducing agent in various synthetic organic chemistry reactions. For example, it is used in the conversion of esters, carboxylic acids, acyl chlorides, aldehydes and ketones into their corresponding alcohols. It also involved in the conversion of amide, nitro, nitrile, imine, oxime and azide compounds into their amines as well as reduces alkyl halides to alkanes. It reacts with sodium chloride to prepare sodium hydride. It acts as a potential hydrogen storage medium which could be used for future fuel cell-powered vehicles. It is mainly used in the preparation of other tetrahydridoaluminumates like sodium aluminum hydride, potassium aluminum hydride and magnesium alanate. Furthermore, it has been used to prepare thermoplastic polyester polyamides from oleic acid and lithium-polymer batteries.

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