Water electrolyzers can transform intermittent renewable energy like solar energy and wind energy into the chemical energy of hydrogen with zero greenhouse-gas emissions. The hydroxide-exchange membrane electrolyzer (HEME) combines the capability to produce pressurized hydrogen with the advantage of being able to use low or non-platinum group metal (PGM) electrocatalysts in the alkaline environment.1 Hydroxide salts, for example, KOH, are added to the HEME water feed on both anode and cathode to improve its performance. However, the specific mechanism of performance improvement still needs to be further understood. In addition, at high current densities, bubble evolution can result in mass-transport limitations, a less well studied phenomena. Mathematical modeling is ideal to explore these issues as it is cost and time efficient and can deconvolute the physics, processes, and observed phenomena and study the applied-voltage breakdown. In this work, we extend our previously developed 1D two-phase continuum model2 to study the varies processes in the HEME and provide insights on performance optimizations.First, the oxygen evolution reaction (OER) and hydrogen evolution reaction (HER) kinetics at different hydroxide concentrations have been studied by rotating disk electrodes (RDE) and implemented in the model. Then, the model is calibrated and validated against experimental HEME polarization curves for different KOH concentrations as a liquid electrolyte. The model clearly shows a performance increase with increasing KOH concentrations, which is consistent with the experimental results. The reduced ohmic resistance and increased electrochemical active surface area (ECSA) are the two main reasons for performance increase. The large amount of hydroxide in the liquid electrolyte not only helps to distribute the reactant hydroxide throughout the catalyst layer (CL), which reduces ohmic loss, but also enables reaction at the interface between the liquid electrolyte and electrocatalyst, which increases the ECSA. Applied-voltage breakdown demonstrates that the electrolyzer performance is dominated by anode kinetics and ohmic loss. A comparison with the DI water feed shows a more uniform current distribution in the anode CL when KOH is added, which indicates a higher utilization of the CL.Second, we present modeling on the effects of bubble coverage. As gas evolves, part of the ECSA is minimized due to bubble coverage. To account for this effect, an empirical relationship between the fractional bubble coverage and the current density is implemented in the model.3 The model shows this bubble coverage effect is more pronounced at large current densities with DI water feed. Acknowledgements This work was funded under the HydroGEN Consortium by the Energy Efficiency and Renewable Energy, Hydrogen and Fuel Cell Technologies Office, of the U. S. Department of Energy under contract number DE-AC02-05CH11231. References R. Abbasi, B. P. Setzler, S. Lin, J. Wang, Y. Zhao, H. Xu, B. Pivovar, B. Tian, X. Chen, G. Wu and Y. Yan, 31, 1805876 (2019).L. N. Stanislaw, M. R. Gerhardt and A. Z. Weber, ECS Transactions, 92, 767 (2019).H. Vogt and R. J. Balzer, Electrochimica Acta, 50, 2073 (2005).