De Beers, the name behind the iconic “Diamonds are forever” slogan, has faced a bit of a rocky road lately. Despite being the face of luxury diamonds since 1947, the company is feeling the heat from both lab-grown diamonds and its parent company, Anglo American, which decided to spin off the diamond business.
While De Beers tried (and failed) to get into the lab-grown diamond jewelry market, there’s one shiny side to this story: their research division, Element Six, has hit the jackpot with synthetic diamonds—just not the kind you’d wear on your finger.
Instead, Element Six specializes in lab-grown diamonds used for industrial purposes. Think cutting tools, abrasives, and even diamonds for drilling. In fact, about 80% of mined diamonds are already used for these types of purposes, so it’s no surprise that Element Six has become a major player in this niche. They’re now the largest Western supplier of these diamonds, making a pretty penny selling to industries like oil, gas, and manufacturing.
But, it’s not all smooth sailing. The diamond market for tools is shrinking, thanks to competition from China and India, and demand is dropping in some traditional industries. But fear not—there’s a new wave of interest, especially in tech. Turns out, lab-grown diamonds are perfect for handling the heat needed in electronics, and with AI booming, Element Six might just be in the right place at the right time.
Meanwhile, De Beers is still feeling the sting of rising popularity for lab-grown diamonds, especially among Gen Z and millennials, who love the sustainable, wallet-friendly options. Add in a global luxury slowdown and shifting attitudes toward marriage, and De Beers’ natural diamonds are looking less appealing.
So, while De Beers might not be the king of diamond rings anymore, their industrial diamonds are definitely having a moment. Who knew that lab-grown diamonds could have such a lasting impact on everything except bling?
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