Applied Nanotech received $500,000 (Euro 513,000) for the worldwide, non-exclusive licence, which includes technology belonging to both Applied Nanotech and its parent company SI Diamond. In adddition, once the licensee's product parts sales exceed $100 m, Applied Nanotech will collect a running royalty of 2%.

The US nanotechnology specialist will also spend six months researching and developing hydrogen sensors for the Japanese company in return for $400,000.

"The new development programme is very significant for us, showing that the results of our research are not limited to display applications," said Zvi Yaniv, president of Applied Nanotech. "Hydrogen sensors have a strong potential to be used in hydrogen fuel cells for many energy needs."

Applied Nanotech is developing technologies that are based on carbon nanotubes, metallized nanoparticles, silicon nanocrystals and nanowires.