China has commissioned its first facility capable of producing ultra-pure helium from low-abundance natural gas, marking a breakthrough in the country’s push for self-sufficiency in critical materials. The plant, built in Yan’an, Shaanxi province by Hefei-based Vacree Technologies, recently passed acceptance testing for its cryogenic purification and neon-removal system. According to China Daily and Science and Technology Daily, the unit produced helium at 99.99997% purity, equivalent to “6N9” grade, with neon impurities below 0.3 parts per million. The installation, designed to operate continuously, can generate around 400,000 cubic metres of high-purity helium annually. The technology stack integrates catalytic dehydrogenation, membrane separation, pressure-swing adsorption, and deep-cold refining, offering a safer and more efficient method of separating helium from hydrogen and neon than conventional processes.
The advance is significant given China’s reliance on imported helium for industries ranging from semiconductors and fibre optics to MRI machines and aerospace. Helium supply has been volatile in recent years, with outages and project delays driving spot prices to near-record highs in 2024–25. The United States, historically the world’s dominant supplier, sold its Federal Helium System to Messer in June 2024, ending decades of state stewardship and consolidating production and storage under private operators. Russia’s Amur gas processing plant, meanwhile, has been slowly restarting after previous incidents, while Qatar’s Ras Laffan complex—currently responsible for roughly a quarter of global supply—plans further expansions later this decade. Against this backdrop of geopolitical and logistical risk, Beijing’s ability to generate laboratory-grade helium from lean gas represents a hedge against foreign dependence.
Technically, the Yan’an breakthrough addresses one of helium extraction’s most complex challenges: separating it from hydrogen, both of which are light, low-molecular-weight gases. By combining adsorption, dehydrogenation and advanced cryogenic polishing, the Vacree system achieves ultra-high purities without excessive energy consumption. Industry experts suggest that if this process can be replicated at scale, China could extend the model to coalbed methane and marsh-gas projects, broadening domestic supply channels.
Economically, the breakthrough offers a partial buffer against global price shocks. Analysts note that global helium markets remain exceptionally tight, with limited spare capacity outside Qatar and Russia. Contract and spot prices reached all-time highs in late 2024, while supply risk remains elevated given security concerns, shipping costs, and concentration of production. For downstream Chinese industries, reducing reliance on imports improves supply chain resilience and reduces exposure to FX volatility. The development also comes as regulatory shifts reshape the global helium trade: the US privatization of reserves alters long-term contracting norms, while Qatar and Russia are expected to remain dominant exporters.
Regionally, the Yan’an plant is modest in scale compared with global hubs, but strategically important. Qatar’s Ras Laffan complex maintains a commanding 25% share of world output, Russia’s Amur facility aims for tens of millions of cubic metres annually at full ramp-up, and the US continues to wield influence through private operators such as Messer, Air Products and Linde. China’s installation does not rival those capacities, yet its indigenous ability to reach six-nines purity from lean gas is a milestone: it demonstrates a pathway toward import substitution and technological leadership in helium purification.
Looking forward, China is expected to scale this approach gradually, integrating it into a broader resource-security strategy that spans rare earths, semiconductors and energy transition materials. The Yan’an breakthrough underlines how Beijing is investing not only in capacity but in process innovation, positioning itself to reduce reliance on volatile global helium markets while extending know-how that could be commercialized internationally. As helium demand grows alongside data centres, superconductors and space exploration, China’s move signals a determination to secure a place at the high-end of the supply chain.
