Shortages disrupt industries as Energy Department designates helium critical material following 60 Minutes report on supply chain crisis
Federal designation announced
The Energy Department named helium a critical material Friday. The decision followed a 60 Minutes report on the Iran war’s effects on the world’s helium supply. Energy Secretary Wright said the designation was intended to strengthen supply chains, support American jobs and help the United States lead in energy and technological innovation.
Shortage reaches industries
The United States is the world’s largest helium producer, but industries have still felt the effects of a shortage. The article links the strain to events that began seven months before the designation.
Helium is a nonrenewable gas that can be cooled into a liquid. Although widely associated with balloons, it is also needed to manufacture smartphones, cars, MRI machines and other technologies.
Qatar disruptions constrain supply
The Strait of Hormuz was effectively closed in February, trapping one-third of global helium supplies in the Persian Gulf. In March, Iranian strikes hit Ras Laffan, a helium-producing facility in Qatar, adding to supply-chain concerns. The article describes the closure and the facility strike as separate disruptions to helium supplies.
Key points
- The Energy Department designated helium a critical material Friday.
- The United States is the world’s largest helium producer, yet industries have faced shortages.
- Helium is used to manufacture smartphones, cars and MRI machines.
- The Hormuz closure trapped one-third of global helium supplies in the Persian Gulf.