Yes batteries can do this for a DC system like in your car. But that is mainly a voltage regulation function.

Power quality correction is a consideration in large industrial AC power networks. It helps with the problems that arise from running large amounts of electric motors where the power factor gets out of balance between inductive and reactive currents.

Since electricity essentially sees the coils within a motor as an inductor, it affects multi-phase power in a way that's detrimental to its ability to transfer power

So capacitor Bank systems are designed to correct the issue so that the overall AC power quality isn't effected for downstream users.