Plasma is an effective means of cutting thin and thick materials alike. Hand held torches can usually cut up to 2 in (48 mm) thick steel plate, and stronger computer-controlled torches can pierce and cut steel up to 12 inches (300 mm) thick. Formerly, plasma cutters could only work on conductive materials, however new technologies allow the plasma ignition arc to be enclosed within the nozzle thus allowing the cutter to be used for non-conductive workpieces.

The HF Contact type typically found in budget machines uses a high frequency high voltage spark to ionise the air through the torch head and initiate an arc. The arc can only be formed if the torch is in contact with the job material. HF Contact type machines are not suitable for applications involving CNC cutting.

Plasma gouging is a related process, typically performed on the same equipment as plasma cutting. Instead of cutting the material, plasma gouging uses a different torch configuration (torch nozzles and gas diffusers are usually different), and a longer torch-to-workpiece distance, to blow away metal. Plasma gouging can be used in a variety of applications, including removing a weld for rework. The additional sparks generated by the process requires the operator to wear a leather shield protecting their hand and forearm. Torch leads also can be protected by a leather sheath.