Yes it is required,
It is used for filtering voltage spikes on the battery line. This electrolytic capacitor is required to keep the voltage ripple at the Vs-pin low during switching operation.
It is usually recommended that the voltage ripple at the Vs-pin to the GND-pin is kept below 1 V (∆VS) peak to peak. The value of CVS must be aligned accordingly.
The layout is very important too. , this capacitor should be positioned with very short wiring close to the NovalithIC™ Lite chip. This must be done to keep the parasitic inductors of the PCB-wires as small as possible
For more details please refer to
NovalithICTM half-bridge family BTN89xx.