US Adds Helium to Critical Materials List as Supply Chain Disruption Risks Grow

Deep News01:20

The US Department of Energy has placed helium on its critical materials list, citing the element's importance to domestic manufacturing and semiconductor production, as well as its growing vulnerability to supply chain disruptions.

The department said in a statement on Friday that this inert gas has no viable substitute in many key applications. Other elements already on the list include cobalt, magnesium, and lithium.

The Department of Energy stated that while the United States holds "substantial" helium-rich natural gas reserves, global demand is growing faster than production, exposing American manufacturers to supply risks.

The statement noted that limited refining capacity and lengthy permitting cycles are constraining the expansion of domestic supply.

According to US Geological Survey data, the United States is the world's largest helium producer, accounting for roughly 43% of global output last year. Qatar and the United Arab Emirates are also major suppliers.

Helium is primarily extracted from helium-rich natural gas and is used in applications ranging from automotive airbags to MRI scanners, but its most important use is in semiconductor manufacturing, where it cools and protects the silicon wafers needed to make chips that underpin the AI boom.

The Department of Energy's critical materials list was established under the Energy Act of 2020 and covers non-fuel minerals, elements, and other materials deemed essential to energy technologies and at high risk of supply chain disruption.

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