Several of the other answers have mentioned "triangulation" but that's not quite right--that would imply that each listening station measures an angle towards the lightning source. But they don't--instead, they collect non-directional data consisting of arrival time stamps.
I believe the word for what they're doing is "trilateration".
Edit: I originally said "multilateration" but it turns out that's not quite right, either.
https://en.wikipedia.org/wiki/Triangulation
https://en.wikipedia.org/wiki/Trilateration
https://en.wikipedia.org/wiki/Multilateration
The More You Know.
http://www.blitzortung.org/Webpages/index.php?lang=en&page=3
They use VLF radio detection to triangulate strikes.
Electromagnetic (link is the "participants" tab on the top). You can tell because there's a smattering of telltale RF terms in the "comments" fields (coax, ferrites, E-field antenna, etc). I imagine that lightning strikes emit a fairly broad spectrum (localization in time -> delocalization in frequency) so the detectors might not all use the same band.
Then based on the speed of sound, they can estimate the distance of the strike.
With many of these devices all over the place recording the data, using math, they can pinpoint the location of where the strike was.
http://habrahabr.ru/post/211701/ (description of their technology in Russian)
http://flashlook.ru/ (official site, no realtime translation now because of lack of funding, there are some prerecorded lightings)