A physics-based equivalent circuit model (ECM) is derived by applying finite volume method to a pseudo-two-dimensional (P2D) model of lithium-ion (Li-ion) batteries. Only standard passive components are used to construct the equivalent circuit, which reflects the fact that a Li-ion battery is an energy storage device. Voltages across and currents through the circuit elements in the ECM are identified with the respective internal electrochemical processes in the battery, thus allowing the parametric values of circuit elements to be expressed as functions of the Li-ion concentrations and temperature. Variations in the parametric values across the thickness of the battery leads to a distributed-parameter ECM amenable for wide range of applications. Furthermore, in contrast to existing reduced-order models of Li-ion battery which are described by differential algebraic equations, the ECM is governed by ordinary different equations wherein all the circuit components are expressed as explicit functions of the state and input variables. Hence, the developed model allows solution to be found directly using matrix algebra, resulting in rapid simulation study suitable for the development of computationally-efficient real-time battery control algorithm. Results of simulation based on the developed distributed-parameter ECM show close agreement with those obtained from a partial differential equation based P2D model under wide range of applied current rate, but at a much reduced computational burden.