NASA chief suggests SpaceX may be booted from moon mission

This would be such a dumb move on the government's part. "Lose the new space race" is ridiculous PR-brain. We are not racing to the same goal! China is trying to land on the moon, we are trying to establish a permanent presence. There is no value to merely returning to the moon to say we did it, and Starship is the only vehicle that can plausibly deliver huge quantities of cargo to the lunar surface.

What’s the main motivation for the moon? Is it a better location than the international space station? What’s the reasoning there?

in space travel there's a saying: once you're out of atmosphere you're halfway to anywhere. it takes tons of energy to get over the friction of air resistance. That's way we want a future where space-related things are built in space as much as possible. Once we can solve the idea of permanent installations on the moon it will have several advantages over an orbital station such as ease of additional construction, potential local resources that don't have to be shipped up and the ability to establish a base that can manufacture the things needed locally from imported or local resources rather than needing to manufacture things on earth and then launch them assembled.

I think it's more escaping the gravity well, as the energy consumed by air resistance is fairly negligible compared to gravity and is more of a stability issue. But yeah, once in LEO you're halfway to anywhere as long as you can bring enough mass up for what you need.