Al-Li alloys have several advantages over conventional Al alloys on account of their properties such as low mass density and high strength. 𝛿′ −𝐴𝑙₃𝐿𝑖 phase is considered to be the most important strengthening phase in Al-Li alloys. In the present study, we predicted the shock induced compression of 𝛿′ − 𝐴𝑙₃𝐿𝑖 for the first time. Our simulations indicated that shock induced melting was expected to occur in 𝛿′ −𝐴𝑙₃𝐿𝑖 at ∼ 80 GPa. Hence, structural and mechanical stability of 𝛿′ − 𝐴𝑙₃𝐿𝑖 were established up to 80 GPa using ab-initio methods. Firstprinciples calculations were done to obtain the parameters required for modelling equation-of-state of 𝐴𝑙₃𝐿𝑖. Further, impedance mismatch (IM) simulations were performed on bilayer targets (𝐴𝑙₃𝐿𝑖-𝐴𝑢 and Al-Au). It was observed from the simulations that use of 𝐴𝑙₃𝐿𝑖 instead of Al led to ∼ 9% higher shock pressure amplification in Au. The ultimate tensile strength at which 𝐴𝑙₃𝐿𝑖 ruptures was estimated and found to be ∼ 10.57 GPa. It was also observed that, 𝐴𝑙₃𝐿𝑖 becomes ductile at high pressures beyond 60 GPa. Our study corroborates the use of Al-Li alloys which contain a huge volume fraction of 𝐴𝑙₃𝐿𝑖 phase, as a structural material in place of Al in shock studies.