In direct methanol fuel cells (DMFCs), the optimum characteristics of ion-exchange membranes are investigated at high concentrations of methanol feed up to 7 M by modifying the diffusion coefficient and the ionic conductivity of the polyelectrolyte material. A Nafion membrane is modified by the incorporation of layered double hydroxide (LDH) nanoplatelets with different Mg2+:Al3+ ratios. When the feed concentration of methanol is lower than 3 M, the DMFC is controlled by the ionic conductivity of the polyelectrolyte membrane because methanol cross-over is not relatively significant. When the feed concentration is high, however, the diffusion coefficient of methanol is the key factor that determines the performance of the fuel cell. This is due to a high concentration gradient of methanol across the polyelectrolyte membrane. The open-circuit voltage is increased by the decreased diffusion coefficient in LDH/Nafion nanocomposite membranes at methanol feed concentrations up to 7 M; apparently because methanol cross-over is suppressed by the incorporation of LDH. The maximum power density of the DMFC is determined by the two competing transport processes of ion conduction and methanol diffusion, especially at a relatively high methanol concentration, that can provide optimum operating conditions in the membrane. (c) 2005 Elsevier B.V. All rights reserved.