It is caused when ice and water drops rub together in the sky during a thunderstorm. As they bump into each other, they stick together, and when they are big enough, they explode with electricity and it comes to the ground as lightning. And it is also caused by The large electric charge that builds up and flashes to Earth, as lightning.
Sorry TMax 95. that's not technically correct. Lightning is caused by charge separation within the cloud that then induces an opposite potential in the ground. The lightning is a large (very large) spark that bridges the gap between earth and ground reducing the potential difference.
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