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From Citizendium, the Citizens' Compendium

Induction heating is a process by which materials that are susceptible to electrical fields are heated by an alternating or varying magnetic field from the use of alternating current (AC). This changing magnetic field repeatedly induces eddy currents within the given material. These eddy currents (also known as Foucault currents) cause a circulating flow of electrons that create an electromagnetic field. This electromagnetic field opposes the applied magnetic field. The opposition of the two fields combined with the relative resistence of the material can produce a loss of energy in the form of heat.