General Motors has established a multibillion-dollar parts purchasing deal to protect its cash reserves and reduce the risk of future supply chain disruptions.

The agreement, worth up to $4.5 billion, involves Procura Auto Parts and financing from a group of banks led by JPMorgan Chase and Banco Santander.

The arrangement allows Procura to prepay suppliers for critical parts, while GM agrees to repay the costs after using the parts in production by July 2029.

GM will pay interest, fees and premiums under the agreement, while the arrangement helps the automaker secure inventory without immediately recording the full costs, CNBC has reported.

The deal comes after years of automotive supply shortages and growing concerns over tariffs and dependence on Chinese suppliers for critical components.