Pull to refresh
Logo
What Changed
Following Why Sign Up
US designates helium as a critical material

US designates helium as a critical material

Rule Changes

Department of Energy move unlocks federal financing for domestic helium producers amid the fifth global shortage

October 23rd, 2026: DOE designates helium a critical material

Overview

Updated Oct 28

The Energy Department designated helium a critical material on October 23, a step that opens federal financing to domestic producers and puts supply under closer government watch. It lands in what consultant Phil Kornbluth calls "shortage 5.0," the fifth helium crunch in recent memory.

Helium cools MRI magnets and purges chip-making chambers, and US output of 81 million cubic metres in 2025 was 43% of world supply. Qatari exports stopped when the Strait of Hormuz closed, and Russia restricted its own exports in April. Pulsar, which is developing a helium project in Minnesota, said the listing recognizes the gas's role in chipmaking and national security.

Why it matters

Every chip fab and MRI scanner needs helium, and Qatari supply is cut off. US capacity is now the last buffer against a global manufacturing halt.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

81M cubic metres
US helium sales in 2025
US commercial helium sales reached about 81 million cubic metres in 2025, worth roughly $970 million. Output has run near 80 million cubic metres a year since 2021.
38M cubic metres
US helium exports in 2025
The US remained a net exporter, shipping 38 million cubic metres abroad and importing eight million.
43%
US share of world helium supply
US production of 81 million cubic metres in 2025 accounted for 43% of global supply, with Qatar and Russia the next largest producers.
2nd
Qatar's global helium rank
Qatar was the second largest producer after the US until the Strait of Hormuz closure halted its exports.

Voices

Curated perspectives — historical figures and your fellow readers.

Sign up to generate historical perspectives on this story.

Log in Sign Up

People Involved

Chris Wright
Chris Wright
US Secretary of Energy
Signed the helium critical material designation
PK
Phil Kornbluth
Independent helium consultant
Tracks global helium supply markets
RB
Richard Brooks
Principal at Garrison Ventures
Advises helium producers and buyers
 Cliff Cain
Cliff Cain
President of Pulsar
Developing a helium project in Minnesota

Organizations Involved

U.S. Department of Energy
U.S. Department of Energy
Federal agency
Designated helium as a critical material

Federal agency overseeing energy policy and research; now monitors helium supply and can extend federal financing to producers.
GS
U.S. Geological Survey
Federal science agency
Maintains its own critical minerals roster

Federal science agency that tracks mineral supply; it removed helium from its critical minerals list roughly four years ago.
PU
Pulsar
Helium exploration company
Advancing a Minnesota helium project

Helium exploration company working on a high-grade discovery in Minnesota.

Timeline

2018 October 2026

5 events Latest: October 23rd, 2026 · 3 weeks ago
Tap a bar to jump to that date

  1. DOE designates helium a critical material

    Latest Policy

    Energy Secretary Chris Wright adds helium under the Energy Act of 2020, opening federal financing and closer monitoring. The Federal Register notice was signed October 21.

  2. Russia restricts helium exports

    Disruption

    Russia imposed temporary export controls on helium to protect its domestic supply, tightening a market already short of Qatari gas.

  3. Strait of Hormuz closes, halting Qatari helium exports

    Disruption

    The closure cuts off Qatar, the second largest helium producer, deepening the global shortage.

  4. Helium dropped from USGS critical minerals list

    Policy

    Helium is removed from the roster after a few years of steadier supply.

  5. USGS adds helium to critical minerals list

    Policy

    After a 2017 executive order, the US Geological Survey includes helium on its critical minerals roster.

Scenarios

1

US helium production boom takes off on federal backing

Possible Resolves by Q2 2027

Discussed by: gasworld and the Washington Examiner note the designation strengthens the investment case for domestic extraction projects

The listing helps producers raise capital by signalling government-recognized demand, even though the Energy Department provides no direct funding or permitting changes. Producers in Wyoming, the Southwest, and Minnesota accelerate projects, and domestic refining capacity grows to meet chip-industry demand.

2

Strait of Hormuz reopens and the shortage eases

Unlikely Resolves by End of 2027

Discussed by: Phil Kornbluth says the shortage would end quickly if the strait reopened

A diplomatic resolution reopens the waterway, Qatari helium flows resume, and global supply recovers. The designation stays on the books but loses urgency as prices normalize and chipmakers get their gas back.

3

Designation stays symbolic as financing hurdles remain

Possible Resolves by Q2 2027

Discussed by: gasworld notes the designation alone provides no new funding or permitting acceleration

Producers still struggle to raise capital given high separation-equipment costs and opaque price benchmarks that the Washington Examiner reports. Domestic output holds flat and the shortage drags on without new capacity.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

September 2010

China rare earth export restrictions (2010)

China curtailed rare earth exports, exposing Japan and Western manufacturers to a supply shock. Prices spiked several-fold within months as buyers scrambled for alternatives.

Then

Western firms paid premium prices and governments launched stockpile and recycling programs.

Now

The episode drove supply-chain diversification and policy attention to critical minerals across the industrial world.

Why this matters now

Shows how a single-supplier shock can reshape industrial policy. Helium's designation follows the same logic: a supply choke point forces governments to protect domestic production.

May 2018

USGS critical minerals list (2018)

After a 2017 executive order, the US Geological Survey published its first critical minerals list, which included helium. The roster flagged minerals essential to US industry and vulnerable to supply disruption.

Then

Helium gained policy visibility for the first time in years.

Now

Helium was later removed as supply stabilized, only to return as a designation under the Energy Department in 2026.

Why this matters now

Helium's on-again, off-again listing reflects the cyclical nature of shortage and surplus in a niche market with few producers.

Sources

(13)
+7
US Department of Energy Associated Press Federal Register Marketplace gasworld Forbes InsideTrade Washington Examiner The Northern Miner ABC News Arkansas Democrat-Gazette GlobeNewswire AOL / NewsNation