Following the idea of three‐wave resonant interactions of lower hybrid waves, it is shown that quantum‐modified lower hybrid (QLH) wave in electron–positron–ion plasma with spatial dispersion can decay into another QLH wave (where electron and positrons are activated, whereas ions remain in the background) and another ultra‐low frequency quantum‐modified ultra‐low frequency Lower Hybrid (QULH) (where ions are mobile). Quantum effects like Bohm potential and Fermi pressure on the lower hybrid wave significantly reshaped the dispersion properties of these waves. Later, a set of non‐linear Zakharov equations were derived to consider the formation of QLH wave solitons, with the non‐linear contribution from the QLH waves. Furthermore, modulational instability of the lower hybrid wave solitons is investigated, and consequently, its growth rates are examined for different limiting cases. As the growth rate associated with the three‐wave resonant interaction is generally smaller than the growth associated with the modulational instability, only the latter have been investigated. Soliton solutions from the set of coupled Zakharov and NLS equations in the quasi‐stationary regime have been studied. Ordinary solitons are an attribute of non‐linearity, whereas a cusp soliton solution featured by nonlocal nonlinearity has also been studied. Such an approach to lower hybrid waves and cusp solitons study in Fermi gas comprising electron positron and ions is new and important. The general results obtained in this quantum plasma theory will have widespread applicability, particularly for processes in high‐energy plasma–laser interactions set for laboratory astrophysics and solid‐state plasmas.