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The analysis of nickel metal hydride (Ni-MH) battery performance is very important for automotive researchers and manufacturers. The performance of a battery can be described as a direct consequence of various chemical and physical phenomena taking place inside the container. In this paper, a physics-based model of a Ni-MH battery will be presented. To analyze its performance, the efficiency of the battery is chosen as the performance measure, which is defined as the ratio of the energy output from the battery and the energy input to the battery while charging. Parametric sensitivity analysis will be used to generate sensitivity information for the state variables of the model. The generated information will be used to showcase how sensitivity information can be used to identify unique model behavior and how it can be used to optimize the capacity of the battery. The results will be validated using a finite difference formulation.