When fats are metabolized in the body, the chemical process that occurs is called lipolysis. During lipolysis, triglycerides are broken down into glycerol and free fatty acids, which can then enter various metabolic pathways. This process is crucial for energy production, especially during periods of fasting or prolonged exercise, as fatty acids are oxidized to yield ATP through beta-oxidation. Proper regulation of lipolysis is essential for maintaining energy balance and preventing metabolic disorders.