This paper proposes a novel parameter identification method for the lithium-ion (Li-ion) battery equivalent circuit model (ECM) considering the electrochemical properties. An improved pseudo two-dimension (P2D) model is established on basis of partial differential equations (PDEs), since the electrolyte potential is simplified from the nonlinear to linear expression while terminal voltage can be divided into the electrolyte potential, open circuit voltage (OCV), overpotential of electrodes, internal resistance drop, and so on. The model order reduction process is implemented by the simplification of the PDEs using the Laplace transform, inverse Laplace transform, Pade approximation, etc. A unified second order transfer function between cell voltage and current is obtained for the comparability with that of ECM. The final objective is to obtain the relationship between the ECM resistances/capacitances and electrochemical parameters such that in various conditions, ECM precision could be improved regarding integration of battery interior properties for further applications, e.g., SOC estimation. Finally simulation and experimental results prove the correctness and validity of the proposed methodology.