Desert Mountain Energy has signed a non-binding Letter of Intent to establish a joint venture for a sodium-nickel-chloride (SNC) battery plant in Roswell, New Mexico.
The SNC battery plant will integrate produced water from regional oil and gas wells into an environmentally responsible cooling and processing system. This approach is designed to support both battery production and a planned AI data-centre complex.
Produced water from area operators will be treated and repurposed, reducing aquifer extraction and lowering costs for smaller oil and gas producers. While Desert Mountain Energy’s own wells generate minimal produced water, the company’s processing expertise positions it as a solutions provider to neighbouring operators. Natural gas resources will also be used to generate electricity for the produced-water system and the adjacent AI infrastructure, creating a vertically integrated and energy-efficient footprint.
As part of the treatment process, salts and rare earth elements (REEs) will be extracted. Sodium will be dried for direct use in SNC battery units, while isolated REEs will be sealed and shipped for refining. This creates multiple revenue streams while minimising waste.
SNC batteries are recognised for stability, long lifecycle and safety. Unlike lithium-ion systems, they cannot burn or explode, making them ideal for grid, industrial and data centre applications. Altech Batteries is currently building a US$170 million SNC plant in Saxony, Germany, highlighting the technology’s growing relevance.
The SNC battery plant is expected to generate jobs, diversify revenue, and provide economic benefits for Chaves County and New Mexico. Next steps include due diligence, engineering evaluation, and development of a definitive joint-venture agreement.
