HPHT Diamond Industry and Market

  While natural diamond mining dominates global supply, laboratory grown diamonds produced through High Pressure High Temperature (HPHT) synthesis are emerging as a significant source for the diamond industry and market. Let's examine some key aspects shaping the HPHT landscape:

  Major Producers - Singapore's IIa Technologies has pioneered the commercial production of high quality HPHT diamonds up to 3 carats in size. Russian firms including New Diamond Technology and the Quantum cluster also mass produce HPHT diamonds and sell internationally. China has over a hundred HPHT machines running and produces billions of small melee sized diamonds.

  Production Capabilities - Current global HPHT production capacity stands around 10 million carats per year but is expanding quickly. HPHT's ability to grow diamonds above 3 carats is also improving. However, electricity usage requirements for HPHT limit environmentally sustainable production levels.

  Costs - HPHT diamond production costs have fallen from thousands to hundreds of dollars per carat over the past decade owing to increased competition, optimizations and lower energy prices. However, cutting and polishing still adds 50-100% to costs for finished jewels. Large gem quality HPHT diamonds remain expensive.

  Pricing - Because of public misconceptions that they are inferior, HPHT diamonds sell at 30-40% discounts to natural equivalents. However, jewelers are gradually educating consumers that HPHT diamonds are optically and physically identical to mined diamonds so pricing parity can be achieved.

  While the natural diamond industry still dwarfs HPHT production currently, lab-grown diamonds are forecast to achieve 20% market share within 5 years. As HPHT technology improves and costs keep declining, it has the potential to transform diamond availability and affordability globally.