The cost to produce a U.S. nickel currently exceeds its face value. As of recent reports, it costs nearly 14 cents to make one nickel, which is more than double its 5-cent face value

. Specifically, the U.S. Mint reported that in 2024, the cost to produce a nickel was about 13.9 cents, leading to significant losses on nickel production

. This high production cost is due to the materials and manufacturing process. Modern nickels are made from a cupronickel alloy, consisting of 75% copper and 25% nickel, rather than pure nickel

. The rising cost of nickel metal itself contributes to the expense, with nickel prices around $15,000 to $16,000 per metric ton in early 2025, although market prices fluctuate due to supply and demand factors

. The U.S. Mint is exploring changes to the metal composition of nickels (and other coins) to reduce costs, such as increasing the copper ratio to 80% copper and 20% nickel, which could save millions annually

. In summary:

• Cost to produce one nickel: approximately 14 cents (2024 data)

• Face value of nickel: 5 cents.
• Metal composition: 75% copper, 25% nickel (currently), with potential shift to 80/20 copper-nickel to reduce costs

• Nickel metal price: roughly $15,000+ per metric ton in 2025, influencing production costs

Thus, making a nickel costs nearly three times its value, primarily due to metal costs and manufacturing expenses.