In what's being described as a win-win-win venture, a three-way agreement has been signed between Austin-based Applied Nanotech Holdings Inc, a world leader in inks and pastes for printed electronics, China's Sichuan Yinhe Chemical Co Ltd and Silicon Valley-based Solexel Inc, a solar cell manufacturer.

The agreement covers advanced solar paste technology being jointly developed and commercialized by the three parties.

The relationship has been in the works for years. Applied Nanotech signed an exclusive agreement for its solar ink and paste technology for silicon-based solar cells with Yinhe Chemical in 2011 and the latter completed its high-volume production plant at its high-tech industrial park in Mianyang, Sichuan province, in late 2012.

The new three-way agreement will complete the development and commercialization of Applied Nanotech's proprietary aluminum paste to achieve an efficiency of 22 percent in Solexel's unique thin solar cells.

"Solexel is a leading developer of new solar cell technology, which in our opinion is the most promising technology to achieve the lowest dollar per watt price for energy users," said Zvi Yaniv, Applied Nanotech's CEO.

"It is moving to putting together the first factory, and they worked with us to develop a special paste for their manufacturing process."

"It is ideal for us to work with ... Solexel and Yinhe Chemical - companies that combine outstanding technology with the potential to revolutionize the solar industry in the near future, and bring extensive experience in high volume manufacturing as well," Yaniv said.

"Solexel already decided to use the developed metallic paste in their factory and obviously we need to successfully transfer the technology to the manufacturing plant of Yinhe Chemical in Mianyang," Yaniv added.

The role that Applied Nanotech played, according to Yaniv, was establishing a marketing strategy and providing R&D services.

In addition, Yinhe Chemical "will be responsible for volume manufacturing and will pay running royalties to Applied Nanotech", Yaniv said.

"On the other hand all the other applications for inks and pastes for printed electronics are what Applied Nanotech is focusing on," Yaniv added.

Yaniv said that the royalties Applied Nanotech receives from Yinhe Chemical related to the sales of their solar paste products would be critical to their cash flow in 2014.

Kwee Lan Teo Yam, vice-president of education and talent alignment at the Austin Chamber of Commerce, said that Applied Nanotech was one of its most active members.

"From what I understand, it is a situation where they were very happy to be able to come to an agreement," she said. "Each company has its own strengths, and by combining all three, I think they will actually be able produce products that meet their expectations."

"This three-way agreement is perfect for commercialization purposes," Yaniv said.

"First you have an R&D company with an excellent reputation, such as Applied Nanotech, then you have the world leader and the champion in developing unique and excellent solar cell technology able to achieve the lowest dollar per watt price. Finally you have an experienced manufacturer that can produce the necessary metallic paste for Solexel in volume production. It is a win-win-win situation," he said.