The Penning source is a low gas pressure, cold cathode ion source which utilizes crossed electric and magnetic fields. The ion source anode is at a positive potential, either dc or pulsed, with respect to the source cathode. The ion source voltage is normally between 2 and 7 kilovolts. A magnetic field, oriented parallel to the source axis, is produced by a permanent magnet. A plasma is formed along the axis of the anode which traps electrons which, in turn, ionize gas in the source. The ions are extracted through the exit cathode. Under normal operation, the ion species produced by the Penning source are over 90% molecular ions. This disadvantage is however compensated for by the other advantages of the system.
One of the cathodes is a cup made of soft iron, enclosing most of the discharge space. The bottom of the cup has a hole through which most of the generated ions are ejected by the magnetic field into the acceleration space. The soft iron shields the acceleration space from the magnetic field, to prevent a breakdown.
Ions emerging from the exit cathode are accelerated through the potential difference between the exit cathode and the accelerator electrode. The schematic indicates that the exit cathode is at ground potential and the target is at high (negative) potential. This is the case in many sealed tube neutron generators. However, in cases when it is desired to deliver the maximum flux to a sample, it is desirable to operate the neutron tube with the target grounded and the source floating at high (positive) potential. The accelerator voltage is normally between 80 and 180 kilovolts.
The accelerating electrode has the shape of a long hollow cylinder. The ion beam has a slightly diverging angle (about 0.1 radian). The electrode shape and distance from target can be chosen so the entire target surface is bombarded with ions. Acceleration voltages of up to 200 kV are achievable.
The ions pass through the accelerating electrode and strike the target. When ions strike the target, 2–3 electrons per ion are produced by secondary emission. In order to prevent these secondary electrons from being accelerated back into the ion source, the accelerator electrode is biased negative with respect to the target. This voltage, called the suppressor voltage, must be at least 500 volts and may be as high as a few kilovolts. Loss of suppressor voltage will result in damage, possibly catastrophic, to the neutron tube.
Some neutron tubes incorporate an intermediate electrode, called the focus or extractor electrode, to control the size of the beam spot on the target.  The gas pressure in the source is regulated by heating or cooling the gas reservoir element.