Avanti Helium renews call for helium's critical mineral status in US amid rising supply risks
March 13 (Reuters) - Avanti Helium AVN.V on Friday reiterated its request for the United States to designate helium as a critical mineral, warning that rising geopolitical risks and shrinking domestic output are putting long-term supply security at risk.
Disruptions to natural gas processing in Qatar, caused by the U.S.-Israel and Iran war, have pushed helium prices sharply higher. The gas is produced as a byproduct of LNG processing, so any slowdown in output directly cuts global supply.
The company said growing dependence on foreign suppliers, including Qatar and Russia, along with the sale of the Federal Helium Reserve, could leave the U.S. facing a structural supply deficit as demand accelerates.
Avanti says demand could nearly double over the next decade, increasing U.S. reliance on imports.
The company adds the supply disruption could have direct impacts on U.S. defense readiness, semiconductor manufacturing and medical infrastructure.
CEO Chris Bakker says, gobal supply is concentrated in sensitive regions, so the U.S. must prioritize secure domestic and North American helium.
Helium is essential for various industries, including semiconductors, aerospace, space launch systems, MRIs, quantum computing and advanced manufacturing.
The Federal Helium Reserve was the U.S. government's strategic helium stockpile, which was sold to a foreign buyer in 2024.
Avanti's Sweetgrass Helium Project in Montana is expected to enter production in 2026 to supply the U.S. market.
The company says the project offers a stable North American supply compared with geopolitically sensitive regions.
Helium spot prices have doubled since the Middle East crisis began, according to Phil Kornbluth, president of Kornbluth Helium Consulting, as buyers scramble to secure supplies.
