Alexander Dennis and BYD UK said they would commence design and assembly of chassis for electric single and double deck buses for the British market, thus ensuring complete vehicles are built in ADL factories in the UK.
ADL is a subsidiary of independent global bus manufacturer NFI Group while BYD specialises in EVs, batteries, energy management and electric mobility.
Electric bus chassis assembly will take place in ADL facilities with help from BYD and is planned to commence in the second half of 2021.
"This significant step has been taken in response to the increasing demand for zero emission vehicles. It further strengthens the partnership's market leading position while underpinning jobs in Britain and developing skills in the growing market for clean vehicle technology," the two companies said in a joint statement.
Since it began in 2015, the partnership has had 500 electric buses delivered or on order.
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Around 70% of electric buses introduced in Britain in this period were supplied by the BYD ADL partnership.
Until now, chassis for the Enviro200EV single deck and Enviro400EV double deck models were built by BYD before being delivered to ADL for UK fitted bodywork.