Chlorobis(ethylene)rhodium(I) dimer is used as a precursor to rhodium(I) norbornadiene catalyst, which is used in an asymmetric 1,4-addition of arylboronic acids to cyclic enones. Further, it serves as an important organic intermediate. It catalyzes the dimerization of ethylene to 1-butene. It is also used in the preparation of homogeneous catalysts.

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