Why all the helium might disappear into space forever

helium shortage, world running out of Helium, MRI, semiconductor, rockets, space, AI, balloons,

In today’s Finshots, we talk about why the world is running out of helium and why that’s a much bigger problem than it sounds.

But before we begin, if you love keeping up with the buzz in business and finance, make sure to subscribe and join the Finshots club, loved by over 5 lakh readers.

Already a subscriber or reading this on the app? You’re all set. Go ahead and enjoy the story!


The Story

What’s the first thing that comes to mind when you think of helium? Probably party balloons, right? The ones that float up into the sky. But once they burst, that helium leaks into the atmosphere, drifts up and eventually escapes into space. It’s gone. Forever.

And that’s what makes helium so unique – and problematic. To understand why, let’s take it from the top.

Helium is the second lightest and second most abundant element in the universe. But the catch is that it’s exceedingly rare on Earth. That’s because it’s an inert gas (so it doesn’t easily bond with other elements in chemical reactions) and incredibly light (so it floats away quickly). So when you combine those two traits, you’ve got a gas that’s nearly impossible to hold on to.

In fact, we didn’t even know helium existed on Earth until 1895. Scientists had only detected it in the Sun’s spectrum, which is why it’s named after Helios, the Greek god of the Sun. But when British chemist William Ramsay isolated it from uranium ore, it became clear that this solar element was hiding on earth too, but just in very small quantities.

And for a while, nobody thought much of this discovery. But that changed during World War I when the US realised it could be used in airships as a safer alternative to hydrogen. For context, hydrogen is highly flammable – one small spark, and the entire airship could go up in flames. But with helium, it was a perfect eureka moment. And by the time World War II came about, helium had become a military essential, used in rocket propulsion and to cool nuclear reactors.

Still, helium was rare. So how did it become so widely available as we can see today, you ask?

Well, it all goes back to the US. At the start of the 20th century, drillers in the US state of Kansas hit a rich natural gas deposit. But the gas just wouldn’t ignite. That’s when the scientists analysed it and found out that the gas reserves contained an unusually high amount of helium. And that set off a new realisation: Helium wasn’t just in the skies or exotic minerals; it was hiding right under our feet, trapped in underground pockets mixed with natural gas. And from there, the US raced ahead. For nearly a century, it dominated global helium production, thanks to its Texas-based Helium Reserve – the world’s largest helium stockpile.

Fast forward to today, and you can see helium powering a surprising range of critical industries. Take healthcare, for instance. MRI machines rely on liquid helium to cool their superconducting magnets. Quantum computers need helium to reach temperatures close to absolute zero. Then there’s the semiconductor industry, where gas plays a crucial role in plasma etching, cooling, and purging contaminants. Even the space industry depends on it as rockets use helium to pressurise fuel tanks, and satellite instruments need it for cooling. It’s also a lifesaver for deep-sea divers, who use a mixture of 80% helium and 20% Oxygen to breathe under high-pressure conditions. And yeah, it’s at your supermarket checkouts, too: the helium-neon gas lasers in barcode scanners wouldn’t work without it.

So yeah, it’s everywhere. The only problem is that its reserves are limited and we’re running out of it!

Because for one, helium is non-renewable. Once extracted and used, it eventually escapes. And we can’t artificially produce it. Second, its supply is highly concentrated. The US, Qatar, and Algeria control most of it. But with US reserves depleting and geopolitical tensions affecting supply chains, there’s a serious bottleneck.

And demand is booming. Helium demand is expected to nearly double by 2035, especially due to the semiconductor boom driven by AI and advanced computing. And since helium has no viable alternatives for heat management in semiconductor manufacturing, demand could skyrocket and so might the prices.

And this worry isn’t limited to high-tech industries. The helium shortage is now threatening something as basic as weather forecasting. Weather balloons, which carry specialised sensors to collect vital data on temperature, wind, and humidity, rely on helium. But the US National Weather Service has started scaling back balloon launches due to the shortage. And that could reduce forecasting accuracy and lead to less warning ahead of severe weather events.

And in India, we rely entirely on imports for helium, making us exposed to price fluctuations and supply disruptions. So if the tap runs dry, industries like healthcare, electronics, space research and AI could face setbacks.

But there’s a glimmer of hope.

In 2016, massive helium reserves were discovered in Tanzania – an estimated 54 billion cubic feet (bcf), enough to fill over a million medical MRI scanners. And later assessments suggest the real number could be much higher. Just last month, Tanzania granted its first-ever helium mining license to Helium One Global. If all goes well, production could start soon, offering the world a new supply lifeline.

In the meantime, countries are scrambling. Some are stockpiling helium in strategic reserves. Others are investing in helium recycling — especially for MRI machines and other medical uses. And researchers are testing alternative gases where possible.

But for now, the bottom line is that until new sources are online and recycling becomes widespread, we need to use helium like the precious resource it is. Because once it’s gone, it’s not coming back.

Until then…

Don’t forget to share this story on WhatsAppLinkedIn and X.


75% of Indians are NOT covered by Life Insurance!

Don’t be a part of the herd — take the first step and lead the way.

A term life insurance plan offers a crucial safety net for your loved ones, ensuring they’ll be financially supported even in your absence.

Book a FREE call with Ditto to learn more about term life insurance and find the best plan for you and your family.