South Korea's largest automaker Hyundai Motor says it has developed a core component of a fuel cell.

The automaker had relied entirely on imports for the membrane electrode assembly (MEA), a key fuel cell part that helps produce the electrochemical reaction needed to separate electrons. 

The MEAs are currently produced by three to four global chemical companies in Japan and the United States.

Hyundai Motor said on Monday that its newly developed MEA is one-point-five times better than the imports in terms of durability and performance.

The automaker said that its MEA will help reduce the price of hydrogen powered cars as it is 13 percent cheaper than imported goods.

Fuel cells account for 40 percent of the production cost of hydrogen cars and MEAs take up 40 percent of the production cost of fuel cells.