Because of its structure, it can be used to create stronger types of ammunition, as well as better armor. Feltrite is also used in creation of EMP Grenades through the use of Feltrite Power Packs, implying that it may have some kind of electronic disruptive capabilities in it. In a complicated refining process, Feltrite can be used to create explosives as well. Which the Shrouded Clan was trying to do, and successfully as mentioned by Antonin Kvasir. Also the Gearheads are known to use it as a component in the nuclear synthesis process to produce massive amounts of energy.