The United States designated helium as a critical material on Friday, citing its essential role in semiconductor manufacturing and energy production, as well as growing concerns over disruptions to global supplies. The move by the US Department of Energy 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.
The US is the world's largest producer of both natural gas and helium, with Qatar and Russia also among the leading helium producers. Helium exports from Qatar have been severely disrupted by Iran's closure of the Strait of Hormuz amid its war with Israel and the US. Iranian strikes on Qatari infrastructure have further affected supplies, while Russia introduced temporary export restrictions in April to protect its domestic market.
US Energy Secretary Chris Wright said the Trump administration was seeking to reduce dependence on foreign sources of critical materials, boost domestic manufacturing, support American jobs and strengthen economic and national security. While the US is seeking to strengthen domestic production, Europe has faced growing difficulties securing helium supplies, compounded by China's decision in July to impose a temporary export ban on the gas. Although China is not a major helium producer, it has served as a transit hub for Russian supplies reaching Europe, according to a July report by the Financial Times.
The EU banned direct imports of Russian helium in 2024, but some supplies reportedly continued to reach European markets through China.
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