I don't think it's entirely known, but it has to
do with electrical currents conducting through
the Earth's outer core, which is made of a molten
mix of iron and nickel. The currents probably
have something to do with the Earth's rotation,
but from what I understand are not entirely
understood. Electrical currents do create magnetic
fields, though, and it is very likely that these
currents are the source of Earth's magnetism.
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