Lantern is a new item that is confirmed in the new caves.
You may place it on the ground and switch it on to make light. When you hold the lanturn it provides light and is refuleable probly with the same things used for lighting camp fires or light berries whitch is what im calling them for now.
The lantern is a item that can be crafted useing 2 of the light flower's "light", 3 sticks and 2 rope.