20 Critical Materials: Washington Adds Helium to List to Protect Manufacturing
Key Facts
The U.S. Department of Energy on October 23, 2026, designated helium a critical material under the Energy Act of 2020, making it the 20th material identified by the department. The move links supply security to the ability of U.S. industries to manufacture semiconductors and advanced technologies. The department said global demand for helium is growing faster than production, raising supply risks for U.S. manufacturers. The designation allows greater federal funding for helium producers and closer government oversight of the material, according to the Associated Press. The decision comes as helium supplies face pressure from geopolitical disruptions and limited capacity to increase production.
Helium's importance to industry stems from properties that make it impractical to replace in many critical applications, according to the Department of Energy. Its uses include semiconductor manufacturing, leak testing of natural gas infrastructure, quantum computing, as well as medical and scientific applications. Assistant Energy Secretary Audrey Robertson said helium could become a "single point of failure" in sectors that rely on it. She said demand for it extends to semiconductors, quantum and supercomputing, and superconducting magnets. The gas also plays roles in cooling, photolithography and leak detection in the semiconductor industry, according to David Isaacs, vice president of the Semiconductor Industry Association.
Supply pressure is particularly evident in the Qatari market, whose exports have been affected by Iran's closure of the Strait of Hormuz during the war with Israel and the United States, according to the Associated Press. The agency reported that Iranian strikes on infrastructure in Qatar also affected supplies. Qatar provides roughly one-third of global helium supplies, according to estimates cited by the agency, making any disruption to its exports consequential for the wider market. China relies on imports, producing only about 15% or less of its needs domestically, with a large share of its imports coming from Qatar. In March 2026, Reuters reported that helium scarcity linked to the conflict in the Middle East had begun affecting production at some global technology supply chains.
Companies are seeking alternative sources as shipping delays and supply shortages persist. Reuters quoted a Chinese sales official at VAT as saying the company is looking for alternative sources, including the United States. But expanding U.S. supplies faces constraints beyond the availability of raw gas; the department points to limited refining capacity and lengthy permitting processes. The Associated Press says U.S. helium extraction facilities are operating at capacity and that licensing and building new facilities takes years. That means the additional funding and oversight enabled by the designation will not immediately remove production and expansion constraints.
The United States accounts for a large share of global production, but also exports some of it. It produced 81 million cubic meters of helium in 2025, equal to 43% of global supplies, and exported 38 million cubic meters, according to the Associated Press. That level is close to annual U.S. production of about 80 million cubic meters since 2021, the agency said. Six new helium facilities began production in the United States during 2025, including three in New Mexico and one each in Colorado, Kansas and Montana, according to the U.S. Geological Survey. The figures point to an expansion in the number of facilities, while total production remains near the annual levels recorded since 2021.
On storage, a helium storage cavern entered service in Beaumont, Texas, enabling surplus production to be stored, according to the U.S. Geological Survey. The agency also said there is no government stockpile of helium. Metallurgical coal used in steelmaking was the last material added to the Department of Energy's critical materials list before helium. The department dates its addition to May 22, 2025, while the Associated Press describes helium as the 20th material on the list. The new listing places helium among materials the department considers important to energy security and manufacturing.
The Department of Energy's notice links the designation to the goal of expanding U.S. semiconductor production and to the needs of data center supply chains and superintelligence infrastructure. The department says achieving the goal of building this infrastructure requires expanding semiconductor production, making helium availability part of the requirements for industrial growth. Refining capacity and permits remain factors determining how quickly new U.S. supplies can be added. The reliance of multiple industries and technologies on the gas also makes supply security a consideration for manufacturers. The designation announcement did not specify a timetable for increasing production or a subsequent measure to implement a particular expansion.