Critical to semiconductor production! U.S. Department of Energy designates helium as a critical material.

On Friday, October 23 local time, the U.S. Department of Energy announced that it has designated helium as a critical material under the Energy Act of 2020 to strengthen U.S. manufacturing and supply chain security. The U.S. Department of Energy's decision makes helium the 20th critical material designated by the agency and incorporates this industrial gas into the critical materials framework of the Energy Act of 2020, including subjecting it to stricter government oversight. U.S. Secretary of Energy Chris Wright wrote in a statement: "President Trump is revitalizing American manufacturing, which means ensuring we have the materials needed to make products in America once again." Wright said, "Helium is essential to producing the semiconductors and advanced technologies that power the American economy. By designating helium as a critical material, we are taking another step toward securing supply chains, creating American jobs, and ensuring the United States remains the world leader in energy and technological innovation." The U.S. Department of Energy determined that helium meets the statutory definition of a "critical material" given its vital role in U.S. manufacturing and the growing supply chain risks it faces. Helium's unique physical properties make it indispensable in semiconductor production, with no viable substitutes in many critical applications. This new designation will help eligible helium projects obtain U.S. government financing, technical assistance, and partnerships, similar to the support provided to rare earth mining companies. How critical is helium? In recent years, global demand for helium has grown faster than production, increasing supply risks for U.S. manufacturers. Although the United States has abundant helium resources, limited refining capacity and lengthy permitting processes continue to constrain U.S. helium production. Helium is a byproduct of natural gas processing, and the Gulf region is currently facing escalating geopolitical risks. Due to Iran's blockade of the Strait of Hormuz and attacks on Qatari infrastructure, Qatar's helium exports have been severely restricted; meanwhile, Russia imposed temporary export controls in April. Rich Brooke, a former executive at Air Liquide, one of the world's largest helium suppliers, recently noted that spot helium prices have tripled since the conflict broke out. Some helium suppliers are drawing on reserves stored in deep underground caverns. The United States is currently the world's largest helium producer, expected to supply 81 million cubic meters of helium in 2025, accounting for about 43% of global production. That year, U.S. helium exports totaled 38 million cubic meters. Helium in the United States is mainly produced in Kansas, Texas, Wyoming, Colorado, Arizona, New Mexico, and Oklahoma. Among them, Kansas ranks first in production, with local plants extracting crude helium and Grade-A helium from natural gas fields in the Hugoton and Greenwood areas. Texas has extensive production and storage infrastructure, including the Panhandle-Hugoton field, the Cliffside field, and gas storage caverns near Beaumont. From chip manufacturing, medical imaging, and quantum computing to magnets and space rockets, helium's applications in these fields are all critical. Audrey Robertson, Assistant Secretary at the U.S. Department of Energy, warned that a helium shortage could become a "single point of failure" for strategically important industries. "We must ensure we can produce these products domestically. Helium is one of those components that could become a 'single point of failure,' and we must not let that happen. That is why we are designating it as a critical material under our statutory authority... This is really about America's future competitiveness and energy security, and we believe this is national security." This article is republished from "Cailian Press," author: Xiaoxiang, GMTEight editor: Wang Qiujia