Use the shared library conversion tool from the Integration Toolkit

Highlight the static library, open convert wizard create a new shared library selecting the resolve references checkbox which will update all applications, libraries, and independent resources that referenced LIB1.

Create a new shared library named TMP1, move all assets from static library, rename the static library, and rename shared library LIB1.

Export static library LIB1 as a shared library, import new shared library into the workspace replacing static library with new shared LIB1.