these are needed for measuring State of Charge (ie. percent charged) of 12V batteries if they don't have Bluetooth SoC functionality
if you have a caravan or 4WD with permanent power system installed then having one of these wired in is very handy
some shunts have a built-in LCD display
buy one with Bluetooth if you wish to be able to set values and see SoC on your phone eg. Victron SmartShunt
one terminal of the shunt is wired to the negative of your lithium battery (and this has to be the ONLY connection to the battery negative terminal for this to work), the other terminal is wired to the negative of your system - this could be a bus bar which allows multiple negative end connections from your system
there is a much thinner cable (usually red and with a small fuse) which connects to a “V Batt” port on the shunt and then to the positive terminal of your lithium battery
if using a Victron shunt it will have a VE port to optionally connect to your Victron server and the Aux input allows a thermometer probe or other options
-