U.S. Designates Helium as a Critical Material

The U.S. Department of Energy has designated helium as a critical material, a move that could expand federal financing for domestic producers (AP).

What’s going on: The late-October “designation by the Energy Department means that more federal financing will be available for helium producers and that the government will monitor it more closely.”

• Helium is a gas that is produced primarily as a byproduct of processing natural gas.
• The U.S. is the world’s largest processor of both natural gas and helium, followed by Russia and Qatar.
• Helium is the 20th critical material identified by the Energy Department and the second gas to be added to the list (the other is fluorine).

Why it’s important: Helium is required in the production of semiconductors and superconducting magnets, as well as in quantum computing and supercomputing.

• “We need to make sure that we can build” semiconductors, Assistant Secretary of Energy Audrey Robertson told the AP. “And helium is one of those components that could be a single point of failure, where we cannot let that happen.”

Constrained supply: Helium exports from Qatar have been reduced significantly by Iran’s closure of the Strait of Hormuz, while Russia has imposed temporary export controls on its helium.

• Despite large helium reserves in the western U.S., domestic production is curtailed by lengthy permitting and construction processes for helium extraction plants.

What it means: The designation will help reduce U.S. dependence on foreign sources of critical materials, Energy Secretary Chris Wright said.

A unique gas: Helium has unique properties, including its non-combustibility and the lowest boiling point of any gas, Robertson said.