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The polymer electrolyte fuel cell (PEFC) is based on Nafion polymer membranes operating at a temperature of 80°C. The main characteristics (structure and properties) and problems of Nafion-based PEFC technology are discussed. The primary drawbacks of Nafion membranes are poor conductivity at low relative humidities (and consequently at temperatures >100°C and ambient pressure) and large crossover of methanol in direct methanol fuel cell (DMFC) applications. These drawbacks have prompted an extensive effort to improve the properties of Nafion and identify alternate materials to replace Nafion. Polymer electrolyte membranes (PEMs) are classified in modified Nafion, membranes based on functionalized non-fluorinated backbones and acid-base polymer systems. Perhaps the most widely employed approach is the addition of inorganic additives to Nafion membranes to yield organic/inorganic composite membranes. Four major types of inorganic additives that have been studied (zirconium phosphates, heteropolyacids, metal hydrogen sulfates, and metal oxides) are reviewed in the following. DMFC and H2/O2 (air) cells based on modified Nafion membranes have been successfully operated at temperatures up to 120°C under ambient pressure and up to 150°C under 3–5 atm. Membranes based on functionalized non-fluorinated backbones are potentially promising for high-temperature operation. High conductivities have been obtained at temperatures up to 180°C. The final category of polymeric PEMs comprises non-functionalized polymers with basic character doped with proton-conducting acids such as phosphoric acid. The advanced features include high CO tolerance and thermal management. The advances made in the fabrication of electrodes for PEM fuel cells from the PTFE-bound catalyst layers of almost 20 years ago to the present technology are briefly discussed. There are two widely employed electrode designs: (1) PTFE-bound, and (2) thin-film electrodes. Emerging methods include those featuring catalyst layers formed with electrodeposition and vacuum deposition (sputtering). The thin-film electrodes have significantly increased performance and reduced the level of platinum loading required. Thin sputtered layers have shown promise for low catalyst loading with adequate performance. Electrodeposition methods are briefly discussed. Finally, the relationship between MEA processing and the durability of the membrane/electrode interface and hence the fuel cell as a whole is presented. [ABSTRACT FROM AUTHOR]