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The structural, optical, electrical and physical properties of amorphous carbon deposited from the filtered plasma stream of a vacuum arc were investigated. The structure was determined by electron diffraction, neutron diffraction and energy loss spectroscopy and the tetrahedral coordination of the material was confirmed. The measurements gave a nearest neighbour distance of 1.53 Å, a bond angle of 110 and a coordination number of four. A model is proposed in which the compressive stress generated in the film by energetic ion impact produces pressure and temperature conditions lying well inside the region of the carbon phase diagram within which diamond is stable. The model is confirmed by measurements of stress and plasmon energy as a function of ion energy. The model also predicts the formation of sp²-rich materials on the surface owing to stress relaxation and this is confirmed by a study of the …