US designates helium a critical material as Europe faces supply squeeze

The US Department of Energy designated helium a critical material on Friday, 23 October, pointing to the gas's essential role in semiconductor manufacturing and energy production, as well as growing concern over disruption to global supplies. The decision opens the way to additional federal funding for helium producers and places the material under closer government monitoring.

Helium is mostly recovered as a byproduct of processing natural gas. The United States is the world's largest producer of both natural gas and helium, and Qatar and Russia are also among the leading producers.

What is disrupting supply

Qatar's helium exports have been badly hit by Iran's closure of the Strait of Hormuz during its war with Israel and the US. Iranian strikes on Qatari infrastructure have affected supplies further. Russia, for its part, brought in temporary export restrictions in April to protect its home market.

US Energy Secretary Chris Wright said the Trump administration wants to cut reliance on foreign sources of critical materials, strengthen domestic manufacturing, support American jobs and bolster economic and national security. "President Trump is bringing back America's manufacturing industry, and that means making sure we have the materials needed to build things in America again," he said in a statement.

Pressure on Europe

Europe has had growing difficulty obtaining helium, a problem compounded by China's July decision to impose a temporary export ban on the gas. China is not a major helium producer, but it has acted as a transit hub for Russian supplies headed for Europe, according to a July Financial Times report.

The European Union banned direct imports of Russian helium in 2024, yet some supplies reportedly kept reaching European markets via China.