Apart from tourism, Lubmin is a major transport and industry hub and investment location in the German energy sector.

Both the Nord Stream 1 gas pipeline from Russia (by Gazprom and E.ON)[needs update] and several power plants (by Ørsted A/S and EnBW) are under construction.

Lubmin's immediate neighbouring municipalities are Kröslin and Rubenow to the southeast, Wusterhusen to the south and Brünzow to the southwest.

According to tradition the village was badly affected by the All Saints' Flood of 1304: a strong wind from the southwest depressed water in the bodden before finally swinging northeast.

In 1309, Duke Bogislav IV transferred Lubmin to the Cistercian abbey of Eldena in the wake of the Reformation.

In 1969 construction work commenced on the nuclear power station and in consequence a railway line was built from Greifswald to Lubmin.

An additional four nuclear reactors were constructed in the building; however Block 5 and 6, completed in 1989, had only progressed to trials before the entire plant was shut down 1990 due to tightened safety standards.

Fears have been raised over potential damage to the coastal landscape and the quality of the traffic route has been criticized.

[citation needed] Three power plants were planned to be constructed in Lubmin to support the Nord Stream 1 Russo–German gas pipeline ending nearby.