Battery system engineers face the challenge of balancing competing requirements regarding performance, maintainability, sustainability, safety, and cost—especially in the automotive industry. IBS potentially offer a solution with fewer trade-offs. They feature a battery management system with advanced sensing and data analysis capabilities that facilitate improved battery monitoring and operation. Reconfigurable energy storage units enable sophisticated operating strategies, including complete cell state control, full energy content utilization, and a measured response to faults. This article presents the design, development, and operation of a full-scale intelligent battery system prototype comprising 324 automotive lithium-ion cells with a nominal voltage of 400$\mathrm{V}$. The system exhibits a modular single cell architecture and an advanced centralized battery management system. We detail the system architecture, hardware and software component design, and system integration. Initial tests demonstrate the battery’s operability, extended functionality, and enhanced safety. Our analysis shows that the additional losses introduced by reconfigurability are more than offset by the benefits of full energy utilization—even for new cells, with increasing advantage as aging progresses. The results underscore the potential of intelligent battery systems and motivate further research and development toward economic assessment and industrial adoption.