What is Lithium Cobalt Oxide used for? Lithium Cobalt Oxide is primarily used for battery manufacturing and portable electronic devices – smartphones, tablets, etc. It is relatively non-volatile and safe. Batteries produced with LiCoO2 cathodes have very stable capacities but have lower capacities and power than those with cathodes based on Nickel-Cobalt-Aluminum Oxides. Issues with thermal stability are better for LiCoO2 cathodes than other nickel-rich chemistries, although not significantly.