De Beers Group has announced its intention to close its lab-grown diamond jewellery brand, Lightbox, marking its commitment to natural diamonds.
As part of the closure process, De Beers Group is discussing the sale of certain assets, including inventory, with potential buyers.
The business was launched with transparent linear pricing of $800 (£600.50) per carat. Since then, LGD prices in the jewellery sector have fallen 90% at wholesale, tracking closer to a cost-plus model as they have diverged from natural diamond prices.
The proposed closure of the Lightbox business reflects a key executional milestone in De Beers Group’s Origins Strategy, as set out in May 2024.
Element Six, De Beers Group’s subsidiary that previously produced lab grown stones for Lightbox, will maintain its exclusive focus on industrial solutions using synthetic diamonds.
Al Cook, De Beers Group CEO, said: “As we move towards becoming a standalone 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.”
He added: “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.”
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