The helium critical material designation was announced by the U.S. Energy Department on Friday, October 23. In its announcement, the department says Secretary Chris Wright designated helium under the Energy Act of 2020 because of its essential role in American manufacturing and growing supply chain risks. CBS News and Euronews also report on it. We haven’t read the Federal Register notice itself, so the details below come from the department’s release and those two reports.
What the helium critical material designation does
CBS says the designation makes more federal financing available to helium producers, and Euronews adds that it brings the material under closer government monitoring. The department’s own release doesn’t spell out what the designation enables or requires, so treat those effects as reported rather than confirmed. As CBS describes the Federal Register announcement, it calls helium “non-substitutable for multiple critical energy functions” and says demand is growing.
By law, a critical material must face a high risk of supply chain disruption and serve an essential function for energy technologies. The department’s last designation, in 2025, covered metallurgical coal, which is used to make coke for steel. There are now 20 designated critical materials, CBS reports.
Why helium matters
Helium is a nonrenewable gas that becomes a liquid when it’s cold enough. Most people know it from balloons, but CBS says it’s also needed to make smartphones, cars, and MRI machines. Wright said in the release that helium “is essential to producing the semiconductors and advanced technologies that power our economy.” Assistant Secretary Audrey Robertson said the department is taking decisive action to give American manufacturers reliable access to it. The department adds that helium has no viable substitute in many critical applications.
Where U.S. helium comes from
The U.S. has significant domestic deposits of helium-rich natural gas, according to the department. Helium is produced as a byproduct of natural gas processing, and Mining.com lists producing areas in Kansas, Texas, Wyoming, Colorado, Arizona, New Mexico, and Oklahoma, with Kansas leading. Even so, the department says global demand is growing faster than production, and U.S. output is held back by limited refining capacity and lengthy permitting timelines.
How the helium supply got tight
The U.S. is the world’s largest helium producer, but CBS says industries have still felt a shortage. The reports trace the squeeze to the Iran war:
- In February, the closure of the Strait of Hormuz trapped one-third of the world’s helium supply in the Persian Gulf.
- In March, Iranian strikes hit Ras Laffan, a helium-producing facility in Qatar.
- Russia introduced temporary export restrictions in April to protect its domestic market, according to Euronews.
CBS says the designation came days after a 60 Minutes report on how the Iran war affected the world’s helium supply. For the oil side of the same conflict, see our coverage of the Brent price spike after a Saudi drone strike.
Europe’s problem
Euronews says Europe is having more trouble finding helium. China imposed a temporary export ban on the gas in July. Although China isn’t a major producer, it has served as a transit hub for Russian supplies reaching Europe, according to a July Financial Times report cited by Euronews. The EU banned direct imports of Russian helium in 2024, but some supplies reportedly still reached European markets through China.
What the helium critical material label means for chips and prices
None of the sources we reviewed gives helium prices or volumes, so we can’t say how tight the market is in numbers. The practical effect of the designation is financing and monitoring for producers, not an immediate change in supply. Chip makers are already watching component demand closely; see our coverage of the Super Micro forecast on AI demand.
Editor’s take
A designation doesn’t produce a single cubic foot of helium. What it does is make it easier to finance new supply in the U.S., which is the world’s largest producer and still felt a shortage. The department’s own list of constraints, refining capacity and permitting, suggests money alone won’t fix it quickly. We’d watch for the first projects that get federal money under the helium critical material label, any helium price data, and whether the supply routes through the Persian Gulf reopen.
