US designates helium critical material amid global supply constraints
The US Energy Department has designated helium a critical material, making federal financing available to producers amid Middle East, Russian and Chinese supply pressures.
The story in focus
The US Energy Department designated helium as a critical material on 23 October 2026, citing its role in semiconductor manufacturing and advanced energy technologies. The move makes more federal financing available to helium producers. It follows supply disruption from Iranian strikes on Qatari facilities, the Strait of Hormuz closure, and Russian and Chinese export curbs.
- Energy Department designated helium a critical material, the 20th such designation and the first since metallurgical coal in 2025.
- The designation cites helium as non-substitutable for semiconductor manufacturing, leak testing of gas infrastructure, quantum computing and medical applications.
- The department links the designation to supply disruption caused by Iranian strikes on Qatar's Ras Laffan facility and the effective closure of the Strait of Hormuz.
- Russia imposed temporary export restrictions in April; China put a temporary export ban in place in July.
- The US is the world's largest helium producer, but industries have reported feeling the shortage.
Designation and financing
The US Energy Department designated helium as a critical material on Friday 23 October 2026. The Federal Register announcement states that helium is non-substitutable for multiple critical energy functions, including semiconductor manufacturing, leak testing of natural gas infrastructure and quantum computing, along with key medical and scientific applications. Under the department's rules, critical materials must carry a high risk of supply chain disruption and serve an essential function for energy technologies.
The designation makes additional federal financing available to helium producers and brings the gas under closer government monitoring, according to Euronews. Energy Secretary Chris Wright said the administration aims to reduce dependence on foreign sources of critical materials. Helium is now among 20 designated critical materials; the department's previous designation, in 2025, was metallurgical coal.
Supply constraints
CBS News reports that the effective closure of the Strait of Hormuz in February trapped one-third of the global helium supply in the Persian Gulf. Iranian strikes on Ras Laffan, a helium-producing facility in Qatar, in March further rattled supply chains. Euronews reports Russia introduced temporary helium export restrictions in April to protect its domestic market, and that China imposed a temporary export ban in July.
The US is the world's largest producer of helium, and the department notes that demand is growing. Euronews reports that Europe has faced growing difficulty securing helium supplies, compounded by the Chinese export ban; the EU banned direct Russian helium imports in 2024. Helium is mainly extracted as a byproduct of natural gas processing, with Qatar and Russia among other leading producers.
Affected industries
Helium is used in manufacturing smartphones, cars, MRI machines and other technologies. CBS News reported that a range of industries had felt the impact of the shortage seven months after the Iranian strikes on the Qatari facility.
How much of the world's helium supply was affected by the Strait of Hormuz closure?
CBS News reports the closure trapped one-third of the global helium supply in the Persian Gulf, and that Iranian strikes later hit Qatar's Ras Laffan facility, further disrupting supplies.
Sources & further reading
- U.S. designates helium a critical material following 60 Minutes report on supply chain crisis ↗CBS News
- US designates helium as critical amid European supply squeeze ↗Euronews.com
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