US designates helium a critical material over semiconductor supply risk

The US Department of Energy designated helium as a critical material under the Energy Act of 2020 on Friday, citing its essential role in semiconductor production and growing exposure to supply chain risks.

Why it matters: Helium has no viable substitute in many semiconductor applications, and the designation puts a gas produced as a natural gas byproduct in seven US states on the federal critical materials list, where limited refining capacity and long permitting timelines are the stated constraints on supply.

Data as of October 23, 2026, 20:17 ET: US Department of Energy news release of October 23, 2026, read via its text as returned in search results and in Mining.com's full reproduction of the release, read in full; a direct fetch of energy.gov failed in this run, so quoted wording rests on those two reproductions, which agree. Euronews report of October 23, 2026, read in full via two syndicated reproductions that matched paragraph for paragraph (euronews.com itself was unavailable), is the source for the European supply context. Euronews said the designation will make additional federal funding available to producers; gasworld reported the designation itself provides no new funding, so no funding claim is made here. Developing item.

Secretary of Energy Chris Wright designated helium as a critical material under the Energy Act of 2020 on Friday, the Department of Energy said, after the department determined that helium meets the statutory definition because of its essential role in American manufacturing and its growing exposure to supply chain risks. The department said helium’s properties make it indispensable to semiconductor production, with no viable substitutes in many critical applications, and that global demand is growing faster than production.

US helium is produced as a byproduct of natural gas processing in Kansas, Texas, Wyoming, Colorado, Arizona, New Mexico and Oklahoma, with Kansas leading production and Texas holding large production and storage infrastructure, Mining.com reported. The department said the United States has significant deposits of helium-rich natural gas, but limited refining capacity and lengthy permitting timelines continue to constrain production.

The designation lands while Europe is having difficulty securing helium, Euronews reported. Qatari helium exports have been severely disrupted by the closure of the Strait of Hormuz and Iranian strikes on Qatari infrastructure, Russia introduced temporary export restrictions in April, and China, a transit hub for Russian supplies reaching Europe, imposed a temporary export ban in July, Euronews said, citing a July Financial Times report for the transit role.

US designates helium a critical material over semiconductor supply risk

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