Research into reduced-order models (ROM) for Lithium-ion batteries is motivated by the need for a real-time embedded model possessing the accuracy of physics-based models, while retaining computational simplicity comparable to equivalent-circuit models. The discrete-time realization algorithm (DRA) proposed by Lee et al. (2012, “One-Dimensional Physics-Based Reduced-Order Model of Lithium-Ion Dynamics,” J. Power Sources, 220, pp. 430–448) can be used to obtain a physics-based ROM in standard state-space form, the time-domain simulation of which yields the evolution of all the electrochemical variables of the standard pseudo-2D porous-electrode battery model. An unresolved issue with this approach is the high computation requirement associated with the DRA, which needs to be repeated across multiple SoC and temperatures. In this paper, we analyze the computational bottleneck in the existing DRA and propose an improved scheme. Our analysis of the existing DRA reveals that singular value decomposition (SVD) of the large Block–Hankel matrix formed by the system's Markov parameters is a key inefficient step. A streamlined DRA approach that bypasses the redundant Block–Hankel matrix formation is presented as a drop-in replacement. Comparisons with existing DRA scheme highlight the significant reduction in computation time and memory usage brought about by the new method. Improved modeling accuracy afforded by our proposed scheme when deployed in a resource-constrained computing environment is also demonstrated.