The United States has designated helium a critical material, citing its importance in semiconductor manufacturing and the risk of global supply disruptions, the Energy Department said Friday.

The designation will make more federal financing available to helium producers and enable closer government monitoring. Helium is mainly produced as a byproduct of natural gas processing. The US is the world’s largest producer, followed by Qatar and Russia.

Qatar’s exports have been severely curtailed by Iran’s closure of the Strait of Hormuz amid its war with Israel and the US, while Iranian strikes on Qatari infrastructure have further affected supplies. Russia imposed temporary helium export controls in April.

Energy Secretary Chris Wright said the move would strengthen domestic manufacturing, support jobs and reduce reliance on foreign sources.

Helium is the 20th material identified as critical by the department. Metallurgical coal, used in steelmaking, was added in 2025. The designation requires an essential role in energy technologies and a high risk of supply-chain disruption.

Beyond balloons, helium is vital for semiconductors, wind, solar and nuclear energy, space exploration, medical imaging and research. Its non-combustibility and extremely low boiling point make it difficult to replace.

The Semiconductor Industry Association said helium supports cooling, photolithography and leak detection, stressing the need for resilient supply chains.

The US produced 81 million cubic metres of helium in 2025, accounting for 43% of global output, with 38 million cubic metres exported. Production has remained around 80 million cubic metres annually since 2021.

Avanti Helium CEO Chris Bakker welcomed the designation, saying investment in exploration could help the US remain self-sufficient.