Why Is Helium So Expensive?

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

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.

Liquid helium prices have skyrocketed too. Universities are paying $15-49 per liter, with some research facilities reporting costs as high as $55 per liter during shortages.

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

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 those 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 undergoes cryogenic distillation – an intensive separation process that exploits helium’s extremely low boiling point of -269°C (-452°F).
3. The gas mixture is cooled until everything except helium liquefies. Helium has the lowest boiling point of any element, so it’s the last one standing – and that’s what makes separation possible.

This process requires a lot 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 – began winding down operations in 2021 as part of a planned government exit from the helium market.

Since helium cannot be artificially manufactured, we’re limited to what is produced by natural gas operations. 

Unsurprisingly, there have been multiple supply deficits since 2006 and helium is one of the most volatile commodity markets in the world.

How to Manage Helium Costs

To protect your bottom line, 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.

The helium market is projected to grow from $30.4 billion in 2024 to $46.8 billion by 2034. With supply limited, having a helium plan will only become more important.

Nick Vasco

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