Helium Demand Skyrockets Amid AI Boom
The growing demand for helium is being driven by the AI boom, which requires large quantities of the gas for semiconductor manufacturing and other applications.
Despite its relative abundance in the universe, helium is rare on Earth due to its tendency to escape into space. Most helium is produced as a byproduct of natural gas production, with Qatar accounting for nearly one-third of global supplies in 2025.
However, the ongoing Middle East conflict has constrained exports through the Strait of Hormuz, while China's recent move to control exports has further reduced supply. As a result, existing reserves and new sources of helium are becoming increasingly valuable.
According to TD Economics economist Mauri Hall, Canada's helium reserves could become more valuable as the country looks to expand production to meet growing demand from the semiconductor sector.