Valve-regulated lead–acid batteries are maintenance free, safer, office compatible, and have higher volume efficiency than conventional designs. They are universally used in telecommunications and uninterruptible power supply systems. With the electrolyte immobilized in the separator or as a gel, it is feasible for a monobloc battery to have cells that are not fully sealed from one another, that is to have a common gas space, with certain attendant benefits. This study demonstrates that small differences in the saturation level, acid strength or operating temperature of the cells in such designs can initiate a cycle that may subsequently result in failure if the movement of oxygen and water vapour between cells is unrestricted. Cells that are initially out-of-balance will go further out-of-balance at an ever-increasing rate. This situation can also arise in monobloc designs with sealed cells if the intercell seal is inadequate or incomplete. Battery failure is associated with a re-distribution of water between the cells with some drying out and having high impedance. The preferential oxygen absorption in those cells produces heavily sulfated negative plates. Results on batteries tested under a range of overcharge conditions and temperatures are presented to illustrate these effects. The rate at which the cycle occurs depends on the initial relative density of the acid, the temperature or saturation imbalance between the cells, and the size of the interconnecting gas space. Batteries operating under a continuous cycling regime, particularly those with high overcharge currents and voltages that generate large volumes of oxygen, are more prone to this type of failure mode than batteries operating under low overcharge, intermittent cycling, or float conditions.