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Small Batteries accumulate power from the network they're connected to whenever production exceeds demand, and no other machines require extra power. When power needs exceed power production, power will be drained from all connected batteries.
A Small Battery holds more than three times as much power as the backpack battery does, and can fill in 32 of the backpack's ten units, increasing the power available for Terrain Tool augments by more than 300%. Small Batteries charge and discharge at the same rate as the backpack battery, even though the bars move slower due to the higher capacity of the Small Battery.
A vehicle such as the Tractor can be indirectly supplied with power from your Tether network by charging a Small Battery in your backpack then placing it on the vehicle. A Tractor can drive for over 7 minutes with a fully-charged Small Battery.