Cree, Inc. and STMicroelectronics announced the expansion of an existing long-term silicon carbide water supply agreement in a statement Tuesday.

The extension doubles the value of the initial agreement to more than $500 million.

The pact is for the supply of Cree’s advanced 150mm silicon carbide bare and epitaxial wafers to Geneva-based STMicroelectronics. Cree says the adoption of this power solution is rapidly growing in the automotive industry in particular.

“Silicon carbide delivers performance enhancements that are critical to electric vehicles and a host of next-generation industrial solutions for solar, energy storage and UPS systems,” said Gregg Lowe, CEO of Cree.

“Cree remains committed to leading the semiconductor industry’s transition from silicon to silicon carbide, and the extension of the agreement with ST ensures we are able to meet the accelerating, global demand for this solution across a diverse range of applications while accelerating the market.”

Cree, Inc. is a manufacturer and marketer of lighting products and products for power and radio frequency applications. The company’s shares traded at $46.22 on Wednesday, down $1.81.