A Canadian company is taking advantage of the data center industry’s demand for the batteries it produces by proposing a battery factory in Roswell, New Mexico.
Desert Mountain Energy, headquartered in Vancouver, Canada already owns several U.S. projects including the West Pecos Gas Field Project in New Mexico with 188 wells and a processing plant.
As PV Magazine reported, SNC batteries made by Desert Mountain Energy, have several distinct characteristics separating them from the more common lithium-ion chemistry used in standalone storage projects. SNC batteries tend to be more stable, safer, and have a longer life. Their safety advantages are particularly notable; they cannot burn or explode, making them a popular choice for data center applications and industrial power systems.
According to the company, its latest New Mexico proposal would treat and repurpose produced water from area operators for cooling and processing needs, a plan it claims will reduce the volume of water extracted from the aquifer as well as lower operating costs for small oil and gas producers. A data center would be located adjacent to the SNC battery manufacturing plant.
Roswell is a city more popularly known for the claimed 1947 crash of a UFO.
Desert Mountain Energy issued a press release, announcing it had signed a non-binding Letter of Intent (“LOI”) to form a joint venture to build and operate a sodium–nickel–chloride (“SNC”) battery manufacturing facility in Roswell, New Mexico. The proposed operation would utilize produced water from regional oil and gas wells as part of an environmentally responsible cooling and processing system designed to support both battery production and a planned artificial-intelligence (“AI”) data-center complex.
Strategic Use of Produced Water & Integration with AI Data Center
Under the contemplated structure, produced water from area operators would be treated and repurposed for cooling and processing needs, thereby significantly reducing the volume of water extracted from the aquifer, as well as lowering operating costs for smaller oil and gas producers. Desert Mountain Energy’s own wells generate minimal produced water, but the Company’s processing expertise positions it to serve as a strategic solutions provider to neighboring operators.
The initiative also supports the Company’s plan to use its natural-gas resources to generate local electricity for the produced-water system and the adjacent AI data-center infrastructure, creating a vertically integrated and energy-efficient footprint.
Sodium, REE and By-Product Management
As part of the produced-water treatment process, salts and certain critical rare earth elements (“REEs”) are extracted and separated.
• Sodium will be dried and utilized directly in the production of SNC battery units.
• Isolated REEs will be dried, sealed, and shipped to qualified facilities for further refining.
This creates multiple value-added revenue streams while minimizing waste and maximizing the commercial usefulness of extracted materials.
About SNC Battery Technology
Sodium–nickel–chloride batteries are known for their stability, long lifecycle, and strong safety profile. Unlike lithium-ion systems, SNC batteries cannot burn or explode, making them well-suited for grid support, industrial power systems, and data-center applications. Altech Batteries Ltd., a global leader in the space, is currently constructing a US$170 million SNC plant in Saxony, Germany, underscoring the technology’s growing commercial relevance.
Altech’s publicly available research notes several advantages for SNC chemistry, including the potential for alumina sourced from recycled specialty aircraft components—supporting broader circular-economy initiatives.
Economic Benefits for Roswell and the State of New Mexico
The joint venture and associated AI-infrastructure development are expected to create new job opportunities and diversify revenue sources for Chaves County and the State of New Mexico. Increased support services for smaller oil and gas operators—including lower disposal costs and extended well life—are expected to lead to higher production levels, which in turn increase tax contributions to local schools, counties, and state programs.
The initiative aligns with local, state, and federal programs offering incentives for energy-transition manufacturing, critical-materials management, and advanced-technology deployment, including elements referenced in yesterday’s Genesis Mission Executive Order from the White House.
Next Steps
The parties will now begin detailed due diligence, engineering evaluation, and the development of a definitive joint-venture agreement. Further updates will be provided as milestones are reached.
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