De Beers said that it would discontinue the production of lab-grown diamonds for jewelry in order to promote the “unique attributes” of natural stones. Stakes are high after sales dropped in 2023, and owner Anglo-American is considering a sale or spin-off.
The miner’s Element Six business will consolidate its three chemical vapor deposition (CVD) factories into a $94 million facility in Portland, Oregon. That factory will transform into a technology hub producing diamonds for industrial use.
The news concludes De Beers‘ six-year experiment in generating its own lab-grown diamonds for the Lightbox jewelry collection, which debuted in 2018. During those six years, prices for lab-grown diamonds fell, resulting in lower retail margins in dollar terms and making the category less enticing to jewelers. De Beers also faced criticism from the industry at various times, most notably when it briefly tried lab-grown diamond engagement rings.
Lightbox will continue to function as a consumer brand following the transition, which will occur in the coming months.The business has enough inventory to keep sales going for the “foreseeable future,” at which point it will decide how to proceed, he stated. De Beers is not considering discarding the line.