US designates helium a critical material
Energy Department unlocks federal funding as Europe faces supply squeeze, Russian helium reportedly reached Europe through China despite 2024 EU ban
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US designates helium as critical amid European supply squeeze
euronews.com
The US Department of Energy designated helium a critical material on Friday, citing its essential role in semiconductor manufacturing and energy production and growing concerns about disruptions to global supply. The designation opens additional federal funding to producers and places the gas under closer government monitoring. Energy Secretary Chris Wright framed the move as part of reducing dependence on foreign sources: "President Trump is bringing back America's manufacturing industry, and that means making sure we have the materials needed to build things in America again."
The designation answers a market squeezed from several directions at once. The United States is the world's largest producer of both helium and the natural gas it is recovered from as a byproduct; the leading alternatives are Qatar and Russia, and both are compromised. Iran's closure of the Strait of Hormuz amid its war with Israel and the United States has severely disrupted Qatari exports, with Iranian strikes on Qatari infrastructure cutting supply further, and Russia introduced temporary export restrictions in April to shield its domestic market. China, not a major producer itself, imposed a temporary export ban in July.
Europe has faced growing difficulties securing supplies, and its instruments have not held. The EU banned direct imports of Russian helium in 2024, but Russian supplies have reportedly kept reaching European markets through China — which the Financial Times described in July as a transit hub for that trade. Euronews cites a related report warning that the squeeze now puts MRI services at risk, helium being vital to chipmaking as well.
The American designation adds no molecules to world supply; it attaches federal money to keeping more of the world's largest production base at home. Europe's ban on Russian helium took effect in 2024; the Russian helium kept arriving, through China.