Empirically, we study the new energy vehicle battery (NEVB) industry in China since the early 2000s. In the case of China's NEVB industry, an increasingly strong and complicated coevolutionary relationship between the focal TIS and relevant policies at different levels of abstraction can be observed.
In addition to annually reducing the amount of subsidy for public and private purchases, these policy adjustments also imposed more stringent technical requirements (e.g., energy density, driving range, etc.) for receiving subsidies in order to promote the development of core battery technologies by the domestic firms (policy aims at low-levels).
Battery technology is a multipurpose technology (Malhotra et al., 2019), and its development is becoming increasingly important for decarbonisation of multiple sectors, including transport (Malhotra et al., 2021). Fig. 1. Coevolution of TIS development and policies: an analytical framework.
As a result, several key enterprises have emerged in each of the battery component fields including Easpring and Ronbay in anodes, Shanshan and BTR in cathodes, Capchem, and Tinci in electrolytes, and Shenzhen Senior and Yunnan Energy New in separators (Industry representative 12).
Regarding knowledge development and exchange (F2 and F3), Chinese battery enterprises have increased their R&D expenditure, leading to several technological breakthroughs as well as increasing domesticalization of the key technologies in the four core battery components (anodes, cathodes, electrolytes, and separators) (Gov.cn, 2020).
Due to the very generous subsidy scheme, many of the Chinese car and battery manufacturers increasingly shifted their focus to meeting the subsidy criteria required by the policy, instead of concentrating on product and process innovations that would guarantee their market success in the long run (Intermediary 3, Expert 4).
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