In this work, a simplified electrochemical and thermal model that can predict both physicochemical and aging behavior of Li-ion batteries is studied. A sensitivity analysis of all its physical parameters is performed in order to find out their influence on the model output based on simulations under various conditions. The results gave hints on whether a parameter needs particular attention when measured or identified and on the conditions (e.g. temperature, discharge rate) under which it is the most sensitive. A specific simulation profile is designed for parameters involved in aging equations in order to determine their sensitivity. Finally, a step-wise method is followed to limit the influence of parameter values when identifying some of them, according to their relative sensitivity from the study. This sensitivity analysis and the subsequent step-wise identification method show very good results, such as a better fitting of the simulated cell voltage with experimental data.