Samarium(III) chloride hydrate is used for the preparation of samarium metal, which finds use as magnets. It is combined with sodium chloride to get a low melting point eutectic mixture. Further, it serves as a precursor for the preparation of other samarium salts and bis(pentamethylcyclopentadienyl)alkylsamarium(III) complexes. In addition, it serves as a catalyst for hydrogenation and hydrosilylation of alkenes.

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