US designates helium as critical material as Europe faces supply squeeze
The United States has designated helium as a critical material, citing its essential role in semiconductor manufacturing and energy production, as global supplies face disruptions.
The designation, announced on Friday, will make additional federal funding available to helium producers and bring the material under closer government monitoring. Helium is mainly extracted as a byproduct of natural gas processing, with the US being the world's largest producer of both natural gas and helium.
Global helium supplies have been severely disrupted by geopolitical tensions. Iran's closure of the Strait of Hormuz amid its war with Israel and the US, along with Iranian strikes on Qatari infrastructure, have affected exports from Qatar, another leading producer. Russia introduced temporary export restrictions in April to protect its domestic market.
US seeks independence
US Energy Secretary Chris Wright stated that the Trump administration is seeking to reduce dependence on foreign sources of critical materials, boost domestic manufacturing, support American jobs and strengthen economic and national security.
President Trump is bringing back America's manufacturing industry, and that means making sure we have the materials needed to build things in America again.
European supply crisis
While the US strengthens domestic production, Europe faces mounting difficulties securing helium supplies. China's decision in July to impose a temporary export ban on the gas has compounded the problem. Although China is not a major helium producer, it has served as a transit hub for Russian supplies reaching Europe.
The EU banned direct imports of Russian helium in 2024, but some supplies reportedly continued to reach European markets through China before China's export restrictions took effect.
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