Battered book

The Battered book begins the Elemental Workshop I quest. When a knife (toolbelt doesn't work) or any slash weapon is used on it, you'll get a Battered key to get into the Workshop and the book will become a slashed book.

It can be found in the shelves in the building south of the building with the anvils in it in Seers' Village only during the quest; after the quest, a slashed book will be found instead. It can also be found in the bookcase in your house after getting it from Seers' Village.

During the Elemental Workshop I quest you need the book or its slashed counterpart in your inventory to make an elemental shield, doing so will complete the quest. After the quest is completed the book and key no longer serve a purpose beyond reading the book's contents (below).

Transcript
Within the pages of this book you will find the secret to working the very elements themselves. Early in the fifth age, a new ore was discovered. This ore has a unique property of absorbing, transforming or focusing elemental energy. A workshop was erected close by to work this new material. The workshop was set up for artisans and inventors to be able to come and create devices made from the unique ore, found only in the village of the Seer's.

After some time of successful industry the true power of this ore became apparent as greater and more powerful weapons were created. Realising the threat this posed, the magi of the time closed down the workshop and bound it under lock and key, also trying to destroy all knowledge of manufacturing processes. Yet this book remains and you may still find a way to enter the workshop within this leather bound volume.

Battered book