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I believe it has what's called passkey 3. There is a transponder embedded in the key head. There is an exciter ring / theft deterrent module mounted around the lock cylinder. When key is inserted, transponder emits proper code to exciter ring which in turn sends a class 2 serial data message to the powertrain control module to allow fuel and ignition operation.
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Does a 2004 explorer have a chip key?
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