The closure will allow the company to redirect investments to enhance the appeal of natural diamonds through marketing.
The company is exploring options to sell Lightbox’s assets, including its inventory, to potential buyers. Launched in 2018, Lightbox offered lab-grown diamonds with transparent pricing at $800 per carat, emphasizing their distinct qualities compared to natural diamonds. However, wholesale prices for LGDs in the jewelry market have since fallen by 90%, shifting to a cost-plus pricing model. This significant price decline, combined with lower demand and uncertainties surrounding tariffs, prompted De Beers to cease Lightbox operations.
The closure will enable De Beers to redirect resources toward marketing initiatives that enhance the appeal of natural diamonds. Over the coming months, the company will ensure a smooth transition for employees, retail partners, suppliers, and other stakeholders. Support for existing Lightbox customers, including warranties and after-sales services, will remain available during the closure period.
De Beers Group CEO Al Cook stated: “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. 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.”
Element Six, a De Beers subsidiary that provided lab-grown diamonds for Lightbox, will shift its focus to synthetic diamond solutions for industrial applications. The subsidiary will centralize its chemical vapor deposition synthetic diamond production in Oregon, USA, to meet growing demand in high-tech industries, such as semiconductors and quantum technologies, while expanding global partnerships.
Earlier in 2024, Anglo American, De Beers’ parent company, reported that it anticipates recording an impairment for its diamond business due to challenging market conditions. The closure of Lightbox reflects De Beers’ commitment to strengthening its natural diamond portfolio while exploring new opportunities for synthetic diamonds in industrial and technological sectors.
