DeBeers Shutting Down Its Lab-Grown Diamond Brand

De Beers, the world’s largest diamond producer by value, is shutting down its lab-grown diamond jewelery brand, Lightbox, marking a strategic retreat from selling synthetic gems to consumers, according to a report from mining.com.

This move aligns with De Beers’ renewed commitment to natural diamonds, a return to the philosophy behind its iconic “Diamonds are Forever” slogan, the report says.

The decision also follows parent company Anglo American’s efforts to streamline operations as part of a broader restructuring. Anglo American, which put De Beers up for sale last year, continues to evaluate options for the 137-year-old business.

The mining.com report says that De Beers entered the lab-grown jewelery market in 2018, reversing its long-held policy of limiting synthetic stones to industrial uses.

However, in June last year, it announced a production halt for Lightbox as part of a five-year plan to simplify its operations and reassert its leadership in the natural diamond and diamond jewelery market.

Element Six, De Beers’ synthetic diamond division that previously supplied Lightbox, will now concentrate exclusively on industrial markets.

“Element Six is well-positioned to seize the rapidly growing potential for synthetic diamond applications across a range of future-facing technologies,” the company stated.

This exit from the synthetic jewelery space comes amid significant turbulence in the diamond market. Weak demand from China and an oversupply of lab-grown diamonds have depressed prices, complicating Anglo American’s plans to divest.

After recording a $1.6 billion writedown last year, Anglo American further slashed De Beers’ valuation by $2.9 billion in February. At that time, CEO Duncan Wanblad noted that De Beers could remain part of the group until 2026, depending on market conditions.