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Now my assumption is that when Plasma comes in contact with a positive charge the EM field is produced but Im not sure how.
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You got that part right!
Plasma is
not some magical mystery [stuff] that somehow ignores the laws of physics. Plasma is simply ionized matter. It consists of negative ions (electrons) and positive ions (atomic nuclei and/or partially ionized atoms). In the presence of a positive charge, the positive ions of the plasma are repelled and the negative ions are attracted.