Hi,
The switches on the right side are driven by an exact 50% duty cycle signal.
With the L (and C) it should generate an exact 50% of total voltage.
So if the lower battery voltage is lower than the upper battery voltage, then the resulting current charges ( or supports) the lower battery by drawing current from the upper battery.
..an efficient way to use about 100% of the battery even when the Ah values differ.
With in series connected batteries the weakest battery limits the useful Ah wich can be drawn, but the weakest battery will become over discharged and becomes weaker and weaker.
Both batteries will wear out equally..it results in optimized lifetime.
Klaus
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Added:
About ripple.
The batteries have relatively high impedance for high frequencies, so adding a low ESR capacitor will improve high frequency impedance.
Klaus