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(Adds details of Traton unit, Navistar investment, background)
May 13 (Reuters) - Volkswagen AG said on Monday it plans an initial public offering of its Traton trucks unit before the 2019 summer break and will invest nearly 1 billion euros ($1.12 billion) in an electric vehicle battery cell plant in Europe.
The German automaker said in a statement that its supervisory board and board of management agreed to prepare an IPO for Traton "subject to further market developments."
In March, Volkswagen put the IPO on hold, citing market uncertainty, stalling what was expected to be Germanys biggest share offering this year.
The automaker had previously said it could list up to 25% of Traton in a deal that was expected to raise between 5 billion and 6 billion euros.
Traton includes the MAN, Scania and Volkswagen trucks businesses. Volkswagen had aimed to list it as part of its drive to create a global trucks operation.
A flotation could give Traton the resources to deepen its relationship with U.S. truck maker Navistar International Corp , in which it currently owns a 16.85% stake.
Navistar shares were up 1.9% at $31.07 in a sharply lower U.S. market after the announcement.
Volkswagen also said on Monday it would open talks on potential locations in Europe for a planned new plant that will produce vehicles under multiple car brands. ($1 = 0.8905 euros) (Reporting by Nick Carey; Editing by Susan Thomas and Dan Grebler)