AES Indiana has filed for a $193 million annual rate increase — and the data center demand the utility is using to justify it has already demonstrated it can simply cancel. That is one of three compounding pressures on Indiana manufacturers right now, alongside a confirmed ThyssenKrupp plant closure in Terre Haute and Michigan writing a $5 million check to lock the Bezos-backed Slate EV startup's supplier relationships inside its own borders first.

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ThyssenKrupp Presta Closes Terre Haute — Tier-2 Suppliers Face Compressed Timelines

ThyssenKrupp Automotive Technology has confirmed the permanent closure of its Terre Haute operation as part of a North American production network consolidation — this is not a temporary idling. Full headcount and timeline have not yet been disclosed, which means WARN Act notification requirements have not been triggered. When that filing comes, it will confirm whether Indiana's economic development agencies have any retention play remaining. Indiana-based OEM and tier-2 suppliers sourcing through Terre Haute now face resourcing decisions on compressed timelines with no clean transition plan in place. The IEDC has been positioning Indiana as the number two automotive state, but that ranking is masking a tier-1 supplier base that is actively contracting underneath it.

AES Indiana Files for $193M Rate Increase — The Demand Behind It Is Cancellation-Prone

AES Indiana has filed for a 10.1% rate increase — $193 million annually — and is requesting a 10.7% return on equity. The utility is citing hyperscaler data center demand to justify the infrastructure spend. That demand has already shown it can evaporate: Google withdrew a $1 billion Indianapolis data center rezoning proposal in September 2025. AEP Ohio watched its large load interconnection queue contract from roughly 30 gigawatts to 13 gigawatts after it required stronger financial commitments from large load customers — a signal that a meaningful share of the original demand was speculative. The IURC is now studying that same model, and its 2026 annual report could restructure how manufacturers are billed alongside data center customers — potentially redefining your cost structure across multiple rate classes. One more layer: AES Indiana's parent is being taken private in a $33.4 billion BlackRock-led deal. The Citizens Action Coalition has argued that transaction changes the incentive structure behind the 10.7% return on equity request. Whether the IURC weighs that in its review is an open question worth watching closely.

Michigan Pays $5M to Lock Slate's Supplier Network — Indiana Manufacturers Need to Move Now

Michigan awarded $5 million to Slate, the Bezos-backed EV startup, to anchor its headquarters and supplier network inside Michigan's borders. The grant itself is not the story. The story is that Michigan is deploying state capital specifically to ensure the supplier relationships forming around Slate's vehicle platform form in Michigan first. Indiana manufacturers with stamping, casting, electrical systems, or interior trim capabilities are geographically close enough to compete — but proximity does not win contracts. Early supplier relationships at EV startups often shape initial production sourcing, even when contracts get rebid later. Indiana plants that wait for a public RFQ are typically engaging a cycle too late.

Questions for Your Morning Huddle

Q: If ThyssenKrupp Presta was anywhere in my supply chain, direct or indirect, what should I do right now? A: Start alternative source qualifications immediately — do not wait for the WARN Act filing to force the timeline on you. Production volume that leaves Terre Haute either absorbs into remaining U.S. plants or disappears from the network entirely, and the window to qualify alternatives closes once the closure schedule is formally announced.

Q: What should Indiana manufacturers do about the AES Indiana rate increase request before the IURC rules?A: Get your tariff classification reviewed now, before the IURC's 2026 annual report lands and potentially restructures large load rate architecture. Pull 24 months of your electricity cost history so you have a clear baseline — that data will tell you where your costs have been heading and give you a strong read on your exposure under a restructured rate design.

Q: Is it too late for Indiana manufacturers to pursue Slate EV supply chain opportunities? A: Not yet, but the window is narrowing. The time to engage Slate's supply chain development team is before production site selection and supplier qualification announcements — not after. Identify the specific capability your facility brings to their sourcing needs and make direct contact now, well ahead of any public RFQ.

These three stories are not separate risk tracks. They are compounding pressure on the same operating margin. Map your ThyssenKrupp exposure, get your tariff classification reviewed, and identify your angle into Slate's supplier network — before each of those windows closes.

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