Kolon Industries will begin production of polymer electrolyte membrane (PEM) used in hydrogen fuel cells next year.
The company will begin construction of the PEM production line at its factory in Gumi this month, it said.
The customer is likely Hyundai Motor Company.
Kolon said the building of the PEM line will allow it to produce membrane electrode assembly (MEA).
The company was currently producing MEA at a pilot level. It is aiming to produce them in 2022.
Kolon said some of its competitors procure PEM to make MEA while it can self-produce PEM which will save costs.