A battery storage and dispensing system for efficiently storing and dispensing various sizes of batteries. The battery storage and dispensing system generally includes a housing having a plurality of vertical compartments that each receive a type of battery, a door pivotally connected to the housing to selectively enclose the vertical compartments forming a plurality of lower openings for batteries to be removed from the vertical compartments and a removal device having a magnet that magnetically connects to the metal terminal end of a battery to allow for efficient removal of the lowermost battery from a compartment.