Multilevel Converters and battery energy storage systems (BESS) are key components in present and future medium voltage networks, where an important integration of renewable energy sources takes place. The Modular Multilevel Converter (MMC) offers the capability of embedding such energy storage elements in a split manner, given the existence of several sub-modules operating at significantly lower voltages. This paper analyzes such a converter structure under different operating modes. In order to eliminate the low frequency components of the sub-module output currents, the latter are interfaced to the batteries by means of non-isolated DC/DC converters. Control algorithms are developed for the balancing of the battery State of Charges and the respective gain limitations are established. Unbalanced grid conditions are also taken into account through the theory of symmetrical components and solutions are proposed. Finally, the development of a down-scaled prototype is described and experimental results are presented.