When to use a LED driver?

Nope. All you need is that chip, nothing more.

Connect the anodes of the LEDs to the battery, cathodes to the chip.

Use pin 7 to switch them on/off, don't connect pin 8.

Please check my attached diagram. The LEDs i will use are rated at 3.2V 20mA, and the battery voltage will vary a bit as it is a lipo 3.5-4.2V.

Is this setup fine now?

Thanks

AN6884.bmp (307 KB)