Motorola plans to commit the bulk of its cash reserves to its cell phone business when it splits from the company’s network equipment business, according to a report today in The Wall Street Journal citing anonymous sources.

Motorola is planning to invest from $3 billion to $4 billion in the cell phone business after it buys back most of its debt, according to the report.

The report comes just as Motorola is poised to launch another Android device for Verizon Wireless. The carrier has sent out invitations for a June 23 event in New York, where the Droid X is expected to be announced. According to the invitation, Motorola co-CEO Sanjay Jha will be joined by Andy Rubin, vice president of engineering for Google; John Stratton, executive vice president and chief marketing officer for Verizon Wireless; and Shantanu Narayen, CEO for Adobe. 

Details of the new device, a 4.3-inch touch screen behemoth that looks a lot like the Sprint EVO form factor, surfaced earlier this week on the tech blog Engadget. That was later followed by a teaser on Verizon’s website about the Droid X “coming soon” that confirms three features: the 4.3-inch display, 720p video capture and HDMI output.