Along with the development of energy storage technology, lithium battery management system became more and more concerned. As one of the key technologies for energy storage system, it is more extensive applied especially in the electric car field. In this article, an inductance balancing method based on the boost topological structure was design to control lithium battery system, including battery protection, charging and discharging, balancing between cells, fault diagnosis and so on. In the system, a bi-directional DC/DC converter was developed as charging and discharging circuit. Then a controller was designed to control lithium battery management chip, get all the information of the battery and make the data displayed in the LCD screen. The advantages of inductance balancing have been proved by experiment.