China Begins Independent Helium Production with High Dependence on the US

Start of Reader Production... Annual Production Capacity of 20 Tons
China Consumes 4,300 Tons of Helium Annually... Mostly Imported from the US

[Asia Economy Reporter Park Sun-mi] China has embarked on its first independent helium production. Amid escalating US-China tensions, this move is seen as China’s initial step to reduce its reliance on US-sourced helium.

According to the Hong Kong South China Morning Post (SCMP) on the 28th, China began operating its first helium plant on the 21st in the Yanchi area of Ningxia Hui Autonomous Region. Previously dependent mostly on imports for helium, China has now started large-scale commercial helium production for the first time.

Experts estimate that helium production here will reach 20 tons annually in liquid form. Considering China consumes over 4,300 tons of helium each year, this amount is very small, but it is significant as the first independent production.

SCMP reported that with the start of this helium production plant, hundreds of similar facilities are expected to be built across China, raising hopes that China will eventually achieve self-sufficiency in helium supply.

Helium is essential for advanced product manufacturing, including the Changzheng 5 rocket used for lunar and Mars exploration, protecting metals during welding, and creating ultra-clean environments for computer chip production. However, China relies heavily on the United States, the world’s largest helium producer holding over one-third of the global helium reserves, for most of its helium supply.

China’s success in its first independent helium production may provide reassurance given the worsening US-China relations. There have been concerns that if US-China relations deteriorate further, China might cut off rare earth supplies to the US, and the US could retaliate by halting helium supply to China. In fact, helium prices more than doubled last year when US-China relations were strained.

However, experts note that although the Chinese government has started helium production to reduce dependence on US imports and achieve economic self-reliance, it will take time to become fully self-sufficient, so reliance on US helium is expected to continue for the time being. Some predict that it may take about 10 more years for China to achieve helium self-sufficiency.

This content was produced with the assistance of AI translation services.