We introduce a magnetic analogue of the seven-dimensional nonassociative
octonionic R-flux algebra that describes the phase space of M2-branes in
four-dimensional locally non-geometric M-theory backgrounds. We show that these
two algebras are related by a Spin(7) automorphism of the 3-algebra that
provides a covariant description of the eight-dimensional M-theory phase space.
We argue that this algebra also underlies the phase space of electrons probing
a smeared magnetic monopole in quantum gravity by showing that upon appropriate
contractions, the algebra reduces to the noncommutative algebra of a spin foam
model of three-dimensional quantum gravity, or to the nonassociative algebra of
electrons in a background of uniform magnetic charge. We realise this set-up in
M-theory as M-waves probing a delocalised Kaluza-Klein monopole, and show that
this system also has a seven-dimensional phase space. We suggest that the
smeared Kaluza-Klein monopole is non-geometric because it cannot be described
by a local metric. This is the magnetic analogue of the local non-geometry of
the R-flux background and arises because the smeared Kaluza-Klein monopole is
described by a U(1)-gerbe rather than a U(1)-fibration.Comment: 19 pages, 2 figures; v2: dimensionful factors corrected throughout,
exposition improved; Final version to be published in JHE