Key facts
- Canada is the leading non-military producer of helium-3 globally.
- Helium-3 is used in quantum computing, deep cryogenics, border security, and experimental nuclear fusion.
- Canada produces helium-3 as a byproduct of tritium removal from heavy water in its CANDU nuclear reactors.
- The U.S. produces helium-3 mainly as a byproduct of dismantling nuclear bombs.
- Quantum computing is expected to be the largest driver of future helium-3 demand.
- The moon is estimated to contain 1-3 million tons of helium-3, compared to Earth's annual production of 15-20 kilograms.
Canada may leverage its significant production of helium-3, a rare isotope critical for advanced technologies, in ongoing trade disputes with the United States. The U.S. imposed tariffs on Canadian goods in July, prompting retaliatory measures from Canada.
Industry experts suggest that Canada's position as the leading non-military producer of helium-3 could be a valuable bargaining chip. This rare gas is essential for quantum computing, deep cryogenics, border security neutron detection, and experimental nuclear fusion. Canada generates helium-3 as a byproduct of its CANDU nuclear reactors, which use natural uranium and have lower fuel cycle costs.
In contrast, helium-3 production in the U.S., Russia, and China is primarily a byproduct of dismantling nuclear weapons, with most of the output retained for government use. The demand for helium-3 is projected to surge due to the rapid advancements in quantum computing, which requires extremely low operating temperatures achievable with helium-3 mixtures.
While the U.S. is investing in lunar helium-3 extraction, with NASA awarding a contract to startup Interlune, the moon is estimated to hold vast quantities of the isotope. However, terrestrial production, though limited, remains crucial for current applications. The economics of producing helium-3 from tritium decay are less favorable than its extraction from CANDU reactors or lunar sources.