Within the PEM REX S project it is planned to develop a competitive PEM system that will provide range extension for a battery electric car. The competitive aspect will be derived from a systematic techno-economic analysis of the complete drivetrain. Following this analysis the system costs will be optimized with respect to the business case, efficiency, durability, reliability and available integration space. A significant focus of the project is the development of an optimized operating procedure and the establishment of a “Diagnoses-based-Control” feature that provides an early warning in order to protect the stack from damage development. The Integration of the developed system into a demonstration vehicle will be achieved following a vehicle integration study.