The US Treasury Department has announced it will wind down penny production after ordering a last batch of coin blanks. The move comes as part of a cost-saving measure aimed at reducing the expense of manufacturing coins.
Penny production costs have risen significantly over the past decade, with the price of making one penny increasing from 1.3 cents in 2014 to 3.69 cents in 2024. Despite this, pennies are still worth less than their production cost due to the high value of materials used to make them.
The US Mint will continue producing pennies until it runs out of coin blanks, which is estimated to save taxpayers $56 million annually. Once penny production ceases, facilities may be converted for other uses, potentially leading to additional savings.
With over 114 billion pennies in circulation, the switch from pennies to larger denominations like nickels could impact businesses dealing with cash transactions. The cost of producing a nickel has also increased by 19.4% in recent years, outpacing its value.
Source: https://www.nytimes.com/2025/05/22/us/politics/penny-manufacturing.html