The Emergence and Transformation of the Lithium-ion Battery Industry in Shenzhen

Abstract

This paper has charted the dynamic evolution of Shenzhen's lithium-ion battery (LiB) industry through four distinctive stages, thereby elucidating the complex interplay between industrial growth, policy interventions, and technological advancements. The framework illustrated not only the vital role of resource pool at each stage of the LiB industry's evolution but also underscored how shifts in industry trends reciprocally influenced the structure of resource pool. In the first stage, the nascent LiB in Shenzhen was driven by local companies, operating on a traditional manufacturing model based on public knowledge. It benefited from the urban development advantages of Shenzhen, including its strategic location, industrial structure, and supportive government policies, setting the stage for subsequent evolution. The second stage marked the formation of a comprehensive industry chain, encompassing both upstream and downstream sectors, driven by the increasing demand for LiBs and the proliferation of consumer electronics manufacturing in Shenzhen. The expansion was not just in capacity but also in the scope, fostering a more interconnected and resilient industry ecosystem. The third stage witnessed a strategic shift from low value-added consumer electronic batteries to high value-added power batteries, propelled by national policy guidance and increased R&D investments. This shift was crucial in transitioning from conventional consumer electronics batteries to more sophisticated and lucrative energy solutions for automotive and industrial uses. The current stage, the fourth, is characterized by continuous innovation, talent development, and an emphasis on synergistic innovation between universities and enterprises. The establishment of intermediary organizations helped to promote the integration of resources and standardized division of labour within the innovation ecosystem. Throughout these stages, Shenzhen's LiB industry has navigated through varying challenges and opportunities, demonstrating remarkable adaptability and resilience. The LiB industry has continually responded to changes in the resource pool, adjusting interaction mechanisms to catalyse growth and innovation. Meanwhile, transformations in the industry have informed resource pool establishments, creating a dynamic feedback loop.