That desciption matches a connector. Forget the brush idea. Now that you bent the piece away, is the battery still charging?Ground was definitely not solid. I’ve been needing to address it. So got a new cable and fixed that.
Sparks were coming from outside, where that thin metal piece with welded on nut was contacting the alternator. As the engine vibrated there was contact and it would arc.
I bent it back away with pliers so it’s not doing that anymore, but if I bridge the gap with a screwdriver it still arcs. I don’t think it should be doing that either though.