US designates helium as critical material as Europe faces supply squeeze

The United States has classified helium as a critical material, citing its importance in semiconductor manufacturing and energy production, amid growing worries over potential global supply disruptions. This decision, made by the US Department of Energy, will enable additional federal funding for helium producers and subject the material to stricter government oversight.

Helium is primarily extracted as a byproduct of natural gas processing. The US boasts the world's largest production of both natural gas and helium, with Qatar and Russia also ranking among the top helium producers. However, helium exports from Qatar have been significantly hampered by Iran's closure of the Strait of Hormuz due to its conflict with Israel, and additional strain from Iranian attacks on Qatari infrastructure.

Russia imposed temporary export restrictions in April to safeguard its domestic market. US Energy Secretary Chris Wright stated that the Trump administration aims to diminish reliance on foreign sources of critical materials, stimulate domestic manufacturing, bolster American employment, and enhance economic and national security.

Wright remarked, "President Trump is revitalizing America's manufacturing sector, which means ensuring we have the necessary materials to build products within the US again." While the US endeavors to bolster domestic production, Europe has encountered mounting challenges securing helium supplies, exacerbated by China's temporary export ban on the gas in July.

Although China is not a significant helium producer, it has functioned as a transit point for Russian helium destined for Europe, according to a Financial Times report from July. The European Union had prohibited direct imports of Russian helium in 2024, but some supplies reportedly persisted in reaching European markets via China.