Australia's Role in Global Semiconductor Supply Chain with Helium

Monday, 18 May 2026, 4:54am

Helium is used for more than party balloons.

In short:

The Middle East conflict threatens one-third of the global helium supply.

Helium can be mined with liquid natural gas, and Australia may export it.

What's next?

There are calls to add helium to the critical minerals list.

For most people, helium is for party balloons and silly voices.

Helium's properties make it attractive and a hot property globally.

Helium is the second-lightest gas, extracted from underground, and floats into the atmosphere.

Global supplies were hit when Iranian missiles struck Qatar's gas plant.

Spot prices have doubled, and long-term contract rates are trending upwards.

Microchip production requires precision technology, including helium.

Arup George is an engineer from the University of New South Wales.

He said helium is in high demand for microchips and semiconductors.

Engineers use helium to check for gas leaks and clear hydrogen rockets.

Helium is inert and does not interact with other materials.

Helium is essential to healthcare.

Helium's most essential uses come from being the coldest liquid substance.

Brisbane startup Magnetica is developing low-helium MRI machines.

It is critical to cool superconducting magnets in MRI machines.

The liquid helium will evaporate over time and requires topping up.

Duncan Stovell is the CEO of Magnetica, developing special MRI machines.

Having equipment closer to the joint being imaged means excellent resolution.

Duncan Stovell says his company is developing low-helium MRIs.

Their design uses far less helium than a typical MRI.

That is because, globally, helium is scarce.

It is only produced when radioactive elements break down deep in the Earth's crust.

It makes its way upwards and is usually found in deposits alongside natural gas.

LNG industry opportunity

The co-location of helium and natural gas presents an opportunity for Australia's gas industry.

Eric May is the CEO of the Future Energy Export Cooperative Research Centre.

Eric May says Australia has underground reserves of in-demand helium.

It estimates helium is likely to be present in commercial quantities in up to six of Australia's natural gas plants.

Yet, the country's only operator in Darwin closed in 2023 after its deposits ran out.

Australia will now import all its helium after the only production plant shuts down.

At present, any helium extracted as part of LNG mining is released into the atmosphere.

One of those looking to capitalise on the helium reserves is Gold Hydrogen.

Neil McDonald says helium deposits have been discovered in South Australia.

We found the world's best purities in helium at 36.9 per cent.

And we're a green helium, not part of a natural gas formation or an LNG supply.

A helium well at a site run by Gold Hydrogen on the Yorke Peninsula.

The company is aiming for commercial production within two years.

We believe that what we have encountered should be fast-tracked.

Calls to return helium to critical minerals list

Estimates suggest there is somewhere between 20 and 150 years supply of commercially extractable helium left.

That is why advocates are calling for it to be returned to the federal government's critical minerals list.

Eric May says helium is an essential gas for modern society.

Listing it means unlocking a range of government tax breaks and investment supports for producers.

The government said it aligned with its strategic partnerships to delist the gas.

We should be incentivising its production and recovery as much as we possibly can.

Dr George said without listing, Australian LNG operators did not have commercial reasons to invest in equipment to capture helium.

Arup George says helium is essential for making semiconductors.

With Qatar out, and Russia curtailed by sanctions, global chip supply is at risk.

He said profitability could be maximised if it was processed and refined onshore.

Having the raw material is one thing, but having a highly refined processed material is where the most value is made.

Resources Minister Madeleine King did not respond to concerns about helium's removal.

The Department of Industry, Science and Resources routinely monitors critical supply chains.

A helium plant on the Yorke Peninsula west of Adelaide.

Monday, 18 May 2026, 4:54am

Monday, 18 May 2026, 8:52am

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