In the majority of applications using lithium-ion batteries, batteries are exposed to some harmonic content apart from the main charging/discharging current. The understanding of the effects that alternating currents have on batteries requires specific characterization methods and accurate measurement equipment. The lack of commercial battery testers with high alternating current capability simultaneously to the ability of operating at frequencies above 200 Hz, led to the design of the presented experimental setup. Additionally, the experimental setup expands the state-of-the-art of lithium-ion batteries testers by incorporating relevant lithium-ion battery cell characterization routines, namely hybrid pulse power current, incremental capacity analysis and galvanic intermittent titration technique. In this paper the hardware and the measurement capabilities of the experimental setup are presented. Moreover, the measurements errors due to the setup's instruments were analysed to ensure lithium-ion batteries cell characterization quality. Finally, this paper presents preliminary results of capacity fade tests where 28 Ah cells were cycled with and without the injection of 21 A alternating at 1 kHz. Up to 300 cycles, no significant fade in cell capacity may be measured, meaning that alternating currents may not be as harmful for lithium-ion batteries as considered so far.