
Key Points
- 01U.S. Energy Department designates helium as a critical material under the Energy Act of 2020
- 02Helium is the 20th material on the DOE critical list and vital for semiconductors
- 03Global supply risks and constrained U.S. production underpin the new designation
- 04Status enables greater federal support and monitoring of helium supply chains
DOE formally designates helium as a critical material
The U.S. Department of Energy has designated helium as a critical material under the Energy Act of 2020, citing its essential role in American manufacturing and growing exposure to supply chain risks. The move is framed as part of an effort to strengthen domestic manufacturing, support U.S. jobs and secure materials considered vital to economic and national security.
Energy Secretary Chris Wright said helium is essential to producing semiconductors and advanced technologies that power the U.S. economy, and that recognizing it as a critical material is intended to help secure supply chains and support American technological leadership.
Helium’s role in advanced technologies and energy
Helium’s unique properties make it indispensable in several high‑technology sectors. Helium is essential for semiconductor production, with no viable substitutes in many critical applications.
Beyond semiconductors, helium plays important roles in wind, solar and nuclear energy production, space exploration, medical imaging and research. It is also needed for quantum and supercomputing applications and superconducting magnets, underscoring its importance across multiple advanced energy and computing technologies.
Helium added as 20th material on DOE critical list
With this decision, helium becomes the 20th material identified on the Department of Energy’s critical materials list. Metallurgical coal for steelmaking was the last substance added in 2025, and fluorine is the only other gas on the list, marking helium as part of a small group of gaseous critical materials.
To qualify as a critical material, a non‑fuel mineral element or substance must serve an essential function in one or more energy technologies and face a high risk of supply chain disruption. The Department of Energy concluded that helium meets this statutory definition given its wide technological use and mounting supply risks.
Global supply strains and geopolitical risks
The designation comes amid heightened concerns over global helium supply. Exports from Qatar have been severely curtailed by the closure of the Strait of Hormuz following Iran’s conflict with Israel and the United States, as well as Iranian strikes on Qatar’s infrastructure. Russia, another major helium producer, imposed temporary export controls in April to protect its domestic supply.
These disruptions add to an environment in which global demand for helium is growing faster than production, increasing supply risks for manufacturers that depend on the gas. The circumstances have raised worries that U.S. industry could become more reliant on foreign sources unless domestic capacity is expanded.
Constrained U.S. production despite large resources
The United States is the world's largest producer of both natural gas and helium, and helium is primarily produced as a byproduct of natural gas processing.
Large helium‑bearing reserves are identified in states including Wyoming, Kansas, Texas, Oklahoma, Colorado and Utah. The plants extracting the most helium, as of 2023, were located in Kansas, Texas, Colorado, New Mexico, Arizona and Oklahoma.
Infrastructure limits and policy implications
Despite abundant resources, U.S. helium output is constrained because extraction plants are operating at their limits and it takes years to permit and build new facilities. The Department of Energy notes that limited refining capacity and lengthy permitting timelines continue to hold back production and refining, even as demand rises.
The new critical material status means helium will receive closer federal monitoring and opens the door to more federal financing for producers. The designation also provides a policy basis to support investments in helium recovery, refining and use capabilities within the United States, with the aim of consolidating more of the supply chain domestically and reducing reliance on overseas sources.
Key Takeaways
- 01Helium’s elevation to critical material status reflects both its central role in semiconductors and energy technologies and mounting global supply disruptions.
- 02Despite large reserves and a leading share of global output, U.S. helium production is constrained by infrastructure limits and long permitting timelines.
- 03Critical designation enables enhanced federal oversight and support, positioning helium as a strategic focus for U.S. manufacturing and supply chain resilience initiatives.
References
- https://www.energy.gov/articles/energy-department-designates-helium-critical-material-strengthen-american-manufacturing
- https://apnews.com/article/energy-critical-materials-minerals-helium-43da160adc1bad389fba0b9ffbd14c3c
- https://www.ien.com/supply-chain/news/22977052/us-designates-helium-as-critical-material-citing-semiconductor-importance
- https://www.the-independent.com/news/world/americas/helium-critical-material-us-global-supply-b3072308.html