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In lead-acid batteries, current will continue to flow even if one or more of the batteries are fully charged. This is the result of electrolysis in the battery, which breaks down into hydrogen and oxygen. This current helps to fully charge other batteries, naturally balancing the charge on all of the batteries. However, a fully charged lithium battery will have a very high resistance and will flow very little current. Therefore, the hysteresis battery will not be fully charged. During balancing, the BMS will apply a small load to the fully charged battery, preventing it from overcharging and allowing other batteries to catch up.

Lithium batteries have many advantages over other battery chemistries. They are a safe and reliable battery solution without worrying about thermal runaway and/or catastrophic melting, which is an important possibility for other lithium battery types. These batteries have an extremely long cycle life, and some manufacturers can even guarantee a battery life of up to 10,000 cycles. Because of the high discharge and charge rates of up to C/2, the round-trip efficiency is as high as 98%, so it's no surprise that these batteries are attractive in the industry. Lithium iron phosphate (LiFePO4) is a perfect energy storage solution.