As a massive spirit forms in the sky, Giovanni is surprised to see his own Badge react to the energy, and Lance roars with laughter and triumph. Lance reveals that the Elite Four had schemed to collect all the Gym Leaders' Badges in a similar fashion to Team Rocket's own plan to amplify the energy of the Badges, and that he was only missing Giovanni's Earth Badge. All the other Badges were laid out in a giant formation on Cerise Island, and Giovanni moving into the center of the volcanic crater had completed the formation.
Elsewhere, Sabrina uses her psychic powers to realize that Agatha and Bruno have likewise been defeated, and leaves. Green remarks that she didn't get to use all her Pokémon, including a Snubbull, before noticing the spirit in the sky and begins to chase after it.
Giovanni, unable to counterattack, merely leaves. Lance is dismissive of Giovanni and reveals his master plan to Yellow: to communicate with the Legendary Pokémon now flying over the island and command it to lay waste to Kanto. Horrified, Yellow tries to plead with Lance, but he merely flies up with his Aerodactyl and leaves his Dragonite to hold Yellow back.
Yellow begs Dragonite to let her pass, but notices that Dragonite has been badly injured after shielding Lance from the lava, and has been hiding its injuries from Lance. Yellow clings to Dragonite as it takes off after Lance, reading its mind to see that Dragonite shares Lance's perspective and is loyal in helping him in his plans to eliminate mankind. Yellow is adamant that people and Pokémon can coexist, and implores her Pokémon to help her show Lance.
Reaching the spirit with Lance, Yellow surprises Lance with her appearance and is quickly attacked. However, Yellow releases Kitty who, evolving into a Metapod, shields her from the blast. Yellow acknowledges that without Red's Pokédex, she can no longer cancel her Pokémon's evolutions, and begs them to lend her their power in stopping Lance. Dody, Omny, Gravvy, and Kitty evolve into their final forms, and Yellow begins her final battle against Lance in the sky.