Why is Helium so Expensive?

Over the last decade, helium prices have soared for two main reasons: decrease in supply and increase in demand. In 2020, helium only cost $7.57 per cubic meter. In 2024, that price jumped to $14. Unfortunately, this summarization is too simplistic to give the whole story. This blog will go over multiple reasons for this rapid increase in price and where these prices might be heading. Read below to learn more.

What is Helium Used For?

Both the gaseous and liquid forms of helium are used in multiple industries to ensure the safety of potentially dangerous machinery. Here are a few examples of helium uses: 

• Space shuttles: NASA uses helium to clean out any excess liquid hydrogen and oxygen from space shuttle fuel tanks. 
• Cars: Helium gas’ ability to quickly diffuse makes it useful in airbags, which need to deploy immediately on impact. 
• MRIs: Helium is a fantastic coolant for dangerous machinery because it is non-combustible and can remain a liquid at temperatures as low as absolute zero. 
• Gas leak detection: Its small size and inert properties also make it valuable detecting gas leaks in volatile pipes and machinery. 

Helium being small, inert, non-combustible, and an excellent coolant makes it highly versatile for all the uses mentioned above and much more. This is one major reason helium’s value has increased over the last few decades. Few elements in nature can match many of these individual characteristics, let alone all of them. Read more about the industries where helium is commonly used.
 

That being said, while helium usage is very high, its extraction process is equally problematic. 

Helium Collection is Inefficient

While the supply of helium may be sustainable for the moment, helium collection has the most problems in two primary areas: cultivation and distribution. 

Helium Collection

Helium is a finite resource that is not farmed in many places around the world. The United States, Qatar, Russia, and Algeria are the four main suppliers of helium, with each of these countries possessing more helium than the next five countries put together.

Additionally, upwards of 50% of the helium collected is lost before it can even be used. This is because helium is so light that Earth’s gravity cannot keep it in our atmosphere. Even when using specially designed tanks, the helium is so light and small, large quantities end up floating away. 

Helium Distribution

Helium distribution is very fickle. With the majority of exports coming from four locations, it is hard to export helium globally in a timely manner. More countries have started creating helium, such as Canada and South Africa, in the attempt to make up for the difficulty in exporting. Other countries like Tanzania are trying to extract helium without treating it as a byproduct of natural gas. However, even with all the effort being put into harvesting helium, these countries still only make up a small percentage of the world’s helium production. 

Gaseous Helium Vs. Liquid Helium

While gaseous and liquid helium are both made up of the same element, there are key differences between the two that make them important in a discussion of helium usage.

Gaseous Helium

Gaseous helium is easier to deal with because it is not only the element’s natural form, but it is also recyclable. It is typically cheaper than its liquid counterpart because of the tasks it performs. As a gas, it is useable for gas leak detection and airbags, where its gaseous qualities are necessary to function. 

Liquid Helium

Liquid helium is the more expensive form of helium because it is widely used in technical industries, and more importantly, it is nonrenewable. The liquid variant is special because it can reach its absolute zero temperatures without becoming a solid. This makes it vital for many industries that require cooling devices, such as particle accelerators and MRIs. 

Alternative Gases

Depending on the application, many helium-related test methods that evaluate DUTs utilize helium primarily because there are no alternatives. You can learn more about these helium leak detection methods.

That being said, there are some alternatives that have overlapping properties. Here is a list of some use cases where other elements could replace helium: 

• Nitrogen: Liquid nitrogen reaches temperatures as low as -320°F, which fulfills similar cooling duties to helium. Additionally, nitrogen can replace helium for leak detection; however, it is unknown if nitrogen’s performance is as accurate. Nitrogen’s values must be calculated and converted to compare it to helium. 
• Argon: Helium is often used as a shielding gas for the welding industry. For certain metals, argon can be a suitable replacement. 
• Hydrogen: Although fairly insignificant, hydrogen is a suitable replacement for helium when filling balloons with air. Hydrogen can also replace helium for deep sea divers mixing helium and oxygen to prevent nitrogen narcosis. 

Renting Solutions From ATEC

ATEC rents NDT equipment to suit a variety of test and measurement needs. To specifically aid any helium detection requirements, we offer helium leak detectors including the Agilent PHD-4 and the Pfeiffer ASM 390. Contact us today to find the right test equipment for you.