Why Is Helium So Expensive?

Helium is expensive due to limited supply, high extraction costs, and increased demand in the medical and tech industries.

In this guide, we cover what impacts the price of helium. You’ll learn about:

• The resource-intensive extraction process
• The ongoing helium shortage 
• The impact of helium costs on your bottom line

Note: prices and figures in this article reflect recent data available at the time of writing, but may change over time – we recommend confirming current rates with your supplier.

Is Helium Expensive?

Yes, helium is very expensive. According to the United States Geological Survey, the estimated base price for Grade-A helium was about $14 per cubic meter in 2024, which is more than 80% higher than in 2020. 

Ultra-high purity helium costs between $28 and $92 per cubic meter, depending on the exact grade.

And it’s not just the helium gas market that has been unfavorable for buyers – liquid helium prices have skyrocketed too. Universities are paying between $15-49 per liter, with some research facilities reporting costs as high as $55 per liter during shortages.

Here are a couple of examples of helium costs in practice:

Mississippi State University spends $5,000-6,000 every 12 weeks just to replenish its liquid helium supply.

And operating an MRI system can result in tens of thousands of dollars in helium costs per year for a hospital!  

What Keeps Driving the Cost of Helium Up?

The cost of helium is getting higher and higher because helium extraction is challenging and the supply of helium is limited.

How Is Helium Extracted? 

Helium’s pathway to your facility starts deep beneath the Earth’s surface. It forms naturally over millions of years through the radioactive decay of uranium and thorium, collecting in the same pockets as natural gas.

Here’s how helium is extracted:

1. Teams drill wells thousands of feet into the Earth’s crust, tapping into these natural gas deposits that contain small amounts of helium – typically only about 0.3% to 3% of the total gas mixture.
2. Once the gas mixture reaches the surface, it goes through an intensive separation process called cryogenic distillation. This process takes advantage of helium’s unique properties, specifically its extremely low boiling point of -452°F (-269°C).
3. The natural gas mixture is cooled to incredibly low temperatures, causing different components to liquefy at different points. As helium has the lowest boiling point of any element, it remains in gas form while other gases liquefy, making separation possible.

This process requires plenty of time, resources, and expertise, all of which contribute to its high costs. Specifically, helium extraction can cost from $90 to $300-$415 per thousand cubic feet (mcf) – the higher range is associated with lower concentration feed gas.

Helium’s Limited Supply

There are only 14 liquid helium refineries in the entire world.

The United States is home to half of these refineries, with the rest scattered across Qatar, Algeria, Australia, Russia, and Poland.

The U.S. Federal Helium Reserve in Amarillo, Texas – which once supplied over 50% of the world’s helium – ceased operations in 2021 as part of a planned government exit from the helium market. This has sent shockwaves through the market.

All of this explains why the global helium market has experienced multiple supply deficits since 2006, making it one of the most volatile commodity markets out there.

You might be wondering:

Can helium be artificially manufactured?

The answer, unfortunately, is no. 

We only have whatever comes out of existing natural gas operations.

How to Manage Helium Costs

To protect your operations from high and rising helium costs, consider:

• Long-term supply contracts to lock in pricing and ensure availability
• Helium recovery systems to recycle gas and cut waste
• Usage audits to identify inefficiencies and reduce unnecessary consumption
• Helium-free alternatives, like argon for welding or helium-free MRI systems

With the exception of switching to helium-free alternatives (which isn’t always possible), these steps won’t eliminate helium cost pressures – but they can make them manageable and help you plan ahead.

Looking ahead, the helium market is projected to grow from $30.4 billion in 2024 to $46.8 billion by 2034. This growth, coupled with limited extraction capabilities, suggests that strategic helium management will only become more important for businesses.

Nick Vasco

Nick is an experienced B2B writer who brings his skill for crafting clear, easily digestible content to the industrial gas space.