Recent interest in lithium-ion batteries for electric and hybrid vehicles, satellite, defense, and military applications has increased the demand on the computational efficiency of lithium-ion battery models. This paper presents an effective approach to simulate physics based lithium-ion battery models in real-time (milliseconds) for simulation and control in hybrid environments. The battery model used for the simulation is derived from the first principles as an isothermal pseudo two-dimensional model with incorporation of concentrated solution theory, porous electrode theory, and due consideration for the variations in electronic/ionic conductivities and diffusivities using the Bruggmann coefficient.