Washington classifies helium as a critical material as U.S. production reaches 81 million cubic meters
Key Facts
The U.S. Department of Energy announced on October 23, 2026, that helium had been added to the list of critical materials under the Energy Act of 2020, highlighting supply risks for sectors that rely on the gas in processes for which no viable alternatives are available. The department said helium’s properties make it essential to semiconductor production and that there are no practical alternatives for a number of critical uses. The classification comes as global demand for helium grows faster than production, increasing supply risks for U.S. manufacturers. The department said, "Global demand for helium is growing faster than production." According to the Associated Press, the designation enables greater federal funding for producers and means closer government oversight of the sector.
The rationale for the decision extends beyond the chip industry: the federal notice included natural-gas infrastructure leak testing and quantum computing among the critical functions for which helium cannot be replaced. It also described the gas as essential for major medical and scientific applications. Energy sectors use it in wind, solar and nuclear power production, as well as space exploration, medical imaging and research, according to the Associated Press. This breadth reflects the supply’s ties to multiple industrial and scientific sectors, not just the semiconductor market. The department says rising demand increases the risk that U.S. manufacturers will face supply shortages.
The United States has abundant helium resources, but the department said limited refining capacity and lengthy permitting processes continue to constrain domestic production. That leaves two barriers to turning available resources into usable supply at a time when global demand is accelerating, according to the department’s assessment. Its statement did not announce faster permitting or incentives for companies; it cited lengthy procedures as a constraint on production. The practical effect of the designation cited by the Associated Press is greater access to federal funding for producers and closer government oversight of the sector. According to the department’s announcement, it does not mean exemptions from permitting requirements or guaranteed funding for any particular company.
U.S. Geological Survey data show that sales of helium sold or used in the United States rose from 76 million cubic meters in 2021 to 80 million in 2024, then to 81 million cubic meters in 2025. The agency estimated the value of 2025 sales at about $970 million. In the same year, the United States produced 81 million cubic meters, equivalent to 43% of global supply, according to the Associated Press. Survey data show that U.S. imports for consumption fell from 12 million cubic meters in 2024 to 8 million in 2025, while exports declined from 41 million to 38 million cubic meters. These figures place the United States among the leading producers and exporters, while the constraints the department cited continue to limit domestic production.
Usage data show helium’s direct role in industries linked to technology and health care: controlled atmospheres, fiber optics and semiconductors accounted for 17% of U.S. use in 2025, while magnetic resonance imaging accounted for 15%, according to the U.S. Geological Survey. The agency estimated the base price for Grade-A helium at about $12 per cubic meter in 2025, with producers charging additional fees on top of that price. For global supply, Reuters reported that Qatar produced about 63 million cubic meters in 2025 out of a global total of about 190 million cubic meters, or nearly one-third of production. A Reuters report cited an estimate by an official at IndexBox that continued supply disruptions could leave the market facing an actual shortfall of about 5.2 million cubic meters per month. This global concentration frames part of the supply risk underpinning the department’s classification of helium as a critical material.