The breeding blanket is a key component of the fusion reactor because it directly involves tritium breeding and energy extraction, both of which are critical to development of fusion power. The lithium ceramics continue to show promise as candidate breeder materials. This promise was recognized by the International Thermonuclear Experimental Reactor (ITER) design team in its selection of ceramics as the first option for the ITER breeder material. Blanket design studies have indicated properties in the candidate materials data base that need further investigation. Current studies are focusing on tritium release behavior at high burnup, changes in thermophysical properties with burnup, compatibility between the ceramic breeder and beryllium multiplier, and phase changes with burnup. Laboratory and in-reactor tests, some as part of an international collaboration for development of ceramic breeder materials, are underway. 133 refs., 1 fig