Sorry for the delay, but I was having trouble opening ur file using 4.11 so it took me awhile to download 4.12.
And what you did did work but not precisely what i was trying to do.
The spawning at the collision point was fine. But the problem was that if the pawn stayed in contact with another mesh for more that (apprx) 1 sec, the sparks stopped. it needs to keep spawning for as long as it stays in contact.
Another issue was that it leaves a trail of sparks on the object it touches which is pretty unrealistic. here’s the image
One last thing is, for some reason, even if the event is OnComponentHit (BasicChip_Mesh) which is the Cogwheel asset, the sparks seem to occur at the sphere’s contact point.
I’m a little confused 