This paper proposes a high resolution anode degradation model of the lithium ion battery based on its physics of operation in 3D and in layers. This model is developed in a multiphysics software called COMSOL and in Matlab. This paper describes the procedure followed to develop the model in 3D and the features of this model. The performance of the model is validated with experimental data obtained from a battery of the same chemistry and capacity. The paper will then relate the effect of the degradation of the anode conductivity on the Thevenin Circuit Model parameters. The established relationship can help identify the parameters that are important for battery degradation and will be invaluable for real-time and online estimation of SOH and SOF of the battery.