The Crafting section of the Monster Lab can be unlocked at level 20.
It allow you to use the Cells in your Vault to create a Monster from scratch, without using the breeding!

Once you are able to collect at least 100 Cells of a specific Monster, you can use the Crafting Pods, in this section of the Lab, to start the creation.
These Pods works almost exactly as the Extracting Pods that you have already been using.

If you don’t have enough specific Cells to create a Monster you can use a part of Elementium Cell to fill the gap! But be aware that you must have at least 80 normal Cells to use the Elementium.
Example:
Pandalf Cells owned 78-> Is NOT possible to use 22 Elementium to create the egg.
Pandalf Cells owned 85-> Is POSSIBLE to use 15 Elementium to create the egg.