The invention relates to Preparation of anhydrous rare earth metal halides from their hydrates comprises preparing slurry of rare earth metal halide hydrate in an organic solvent, refluxing and azeotropic distillation for quantitative removal of surface and bond water. This prepared anhydrous rare earth metal halides particularly halides and more specifically anhydrous cerium chloride has wide range of applications in electrochemical reduction process for production of metal and as catalyst in the addition of organometallic to carbonyl group to form corresponding alcohols.
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