Neon is a colorless, odorless noble gas with a unique position in the global commodity market, primarily due to the difficulty of its extraction. Answering the cost “per gram” is challenging because commercial transactions are almost never calculated by weight. Instead, the price is highly volatile and determined by purity, packaging, and fragile global supply chains. The theoretical cost of neon can fluctuate wildly, depending on purity and market conditions.
Translating the “Per Gram” Cost to Industrial Metrics
In the industrial gases market, neon is typically measured and sold by volume, using metrics such as the liter or cubic meter (CBM). This volumetric standard is used because neon is a low-density gas, making volumetric measurement more practical than weighing. A high-purity grade of neon might cost between $27 and $276 per cubic meter, depending on the purchasing region and market dynamics.
To approximate a “per gram” cost, one must use the gas density: at standard temperature and pressure, neon has a density of about 0.9 grams per liter. Using this figure, a gram of neon could theoretically cost anywhere from a few cents to over 30 cents, before factoring in purification, compression, and delivery costs. This theoretical material cost is vastly overshadowed by the expense of specialized high-pressure cylinders and the logistical complexity of safe transportation. Therefore, the actual purchase price is a cost per container, including the vessel, compression, and distribution network, not just the raw gas.
Purity Grades and Delivery Methods
The most significant factor determining the price of neon is its purity level, which directly relates to its intended application. Lower-cost, standard-grade neon is used for applications like lighting and research. However, the vast majority of demand comes from the semiconductor industry, which requires ultra-high purity (UHP) grades.
These UHP grades are designated using an “N” system (e.g., 5N means 99.999% pure), with tightly controlled limits on contaminants like helium, oxygen, and moisture. The extensive, energy-intensive purification and testing required to reach these specifications adds substantial cost to the final product.
The delivery method also significantly impacts pricing, as the gas must be shipped in specialized high-pressure steel cylinders or cryogenic liquid containers. Liquid neon, used as a cryogenic refrigerant, requires extremely specialized, insulated dewars due to its very low boiling point of -246°C, further increasing the delivery expense.
Global Supply Dynamics and Primary Demand Drivers
The price volatility of neon stems from its unique production process and concentrated sourcing. Neon is not mined directly but is a byproduct collected during the cryogenic air separation process used primarily to produce industrial oxygen and nitrogen. This reliance on another industry means neon supply cannot be easily ramped up in response to increased demand, creating an inelastic supply chain.
The primary driver of high demand is the semiconductor industry, which uses ultra-high purity (UHP) neon as a buffer gas in excimer lasers for photolithography. These lasers etch microscopic circuits onto silicon wafers, making neon indispensable for manufacturing advanced computer chips.
The global supply of neon was highly concentrated, with a significant portion of the world’s purification capacity located in Ukraine and Russia. This geographic concentration makes the supply chain highly susceptible to geopolitical instability.
This instability was demonstrated by price spikes of over 600% following the 2014 annexation of Crimea and a nearly nine-fold increase after the 2022 conflict in Ukraine. Any threat to the primary sourcing region causes immediate global price shock, transforming neon into a strategic commodity.