Diamond mining giant De Beers Group has announced plans to discontinue its lab-grown diamond (LGDs) jewellery brand Lightbox and focus on natural diamonds in the jewellery sector.
Discussions regarding the sale of Lightbox's assets, including its inventory, to potential buyers are under way.
Launched in 2018, Lightbox distinguished LGDs from natural diamonds, highlighting their unique attributes and differing values by offering transparent linear pricing of $800/carat.
However, LGD wholesale prices in the jewellery sector have since plummeted by 90%, aligning more with a cost-plus model. This price drop has led De Beers Group to cease operations of the Lightbox business.
Lower demand and uncertainties regarding tariffs have also contributed to the company's decision, reported Reuters.
The planned shutdown of Lightbox is a strategic step in De Beers Group's Origins Strategy, introduced in May 2024, to concentrate on high-return activities and streamline operations.
The closure will allow the company to redirect investments into initiatives that enhance the appeal of natural diamonds through marketing efforts.
De Beers Group will work towards facilitating a smooth transition for employees, retail partners, suppliers and other stakeholders over the next few months.
Support for existing Lightbox purchases including warranties and after-sales services will continue throughout the closure period.
De Beers Group CEO Al Cook said: “As we move towards becoming a stand-alone company, we continue to optimise our business, reduce costs and build a focused De Beers that is positioned for profitable growth.
“The persistently declining value of lab-grown diamonds in jewellery underscores the growing differentiation between these factory-made products and natural diamonds. Lightbox has helped to highlight the fundamental differences in value between these two categories.
“Global competition continues to intensify with more low-cost lab-grown diamond production from China. In the US, supermarkets are driving down lab-grown diamond jewellery prices. Overall, we expect both the cost and price of lab-grown diamonds to fall further in the jewellery sector.
“The planned closure of Lightbox reflects our commitment to natural diamonds. We are also excited at the growing commercial potential for synthetic diamonds in the technology and industrial space.”
Element Six, a De Beers Group subsidiary that supplied lab-grown stones for Lightbox, will continue focusing on synthetic diamond industrial solutions.
The company will capitalise on the increasing demand for synthetic diamonds in high-growth industries such as semiconductors and quantum technologies.
Element Six will centralise its chemical vapour deposition synthetic diamond production in Oregon, US, from where it plans to expand its global partnerships and drive innovation in industrial and high-tech applications.
Earlier this year, Anglo American, the parent company of De Beers, announced that it expects to book an impairment this year for its De Beers diamond business due to weak market conditions.
