In lending $9.2 billion to Ford Motor Co., the Biden administration is taking cues from two sources with whom it has a complicated relationship: Elon Musk and the Chinese Communist Party.

The Department of Energy loan will cover most of the cost of building three battery factories in Tennessee and Kentucky that are jointly owned by Ford and South Korea’s SK On Co., according to a Bloomberg News exclusive on Thursday morning. In doing so, Ford aims to close the gap on electric vehicles with Tesla Inc. and the US aims to close a similar gap with China. On both counts, and as with any loan, much depends on how well the money is spent. But the provision of that money, from ultra-deep pockets, is the essential first step.

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