The US helium designation makes the gas a critical material under the Energy Act of 2020, after the Department of Energy determined that its manufacturing role and supply-chain risks met the statutory definition.

Key Takeaways

  • Energy Secretary Chris Wright designated helium as a critical material.
  • The gas is used in semiconductor production, with no viable substitutes in many critical applications.
  • Limited refining capacity and lengthy permitting timelines constrain US production despite substantial domestic deposits.

Why the helium designation matters

The designation recognizes helium’s importance to American manufacturing, particularly semiconductor production. The Energy Department said the gas faces growing exposure to supply-chain risks.

Wright said securing access to materials such as helium supports domestic manufacturing and advanced technology. The designation is part of the Trump administration’s effort to reduce US reliance on foreign sources of critical materials.

Domestic supply faces constraints

The United States has substantial deposits of helium-rich natural gas, but limited refining capacity and lengthy permitting timelines constrain production. Global demand is growing faster than production, increasing supply risks for manufacturers.

The designation has been made, rather than proposed. The available information does not specify an effective date, describe helium’s previous status or identify any new obligations for producers or manufacturers.

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