In Russia, the media covers Tony Stark's disclosure of his identity as Iron Man. Ivan Vanko, whose father Anton Vanko has just died, sees this and begins building a miniature arc reactor like Stark's.
Six months later, Stark has used his armor to help maintain world peace. He re-institutes the Stark Expo in Flushing Meadows to continue his father Howard's legacy. Senator Stern demands that Stark turn over the Iron Man technology to the government, but Stark refuses.
The palladium
core in the arc reactor that keeps Stark alive and powers the armor is
slowly poisoning him, and he has failed to find a substitute. Growing
increasingly despondent and reckless due to his impending death, and
choosing not to tell anyone about his condition, Stark appoints his
personal assistant Pepper Potts CEO of Stark Industries, and hires Stark employee Natalie Rushman as his personal assistant.
While Stark is racing a car at the Circuit de Monaco,
he is attacked by Vanko using his arc reactor to power whip-like energy
weapons. While Stark is defeating Vanko with the aid of his portable
briefcase armor, he learns that Vanko is the son of his father's old
partner, Anton Vanko, who had collaborated with Howard on the first arc
reactor. Anton was deported to his native Soviet Union following
attempts to profit from the technology - which Howard had wished to make
freely available to all - and died in poverty, explaining Vanko's
desire for revenge on the Stark family. Rival defense contractor Justin Hammer
fakes Vanko's death and recruits him to perfect a line of armored suits
to upstage Stark. Hammer, who equals Stark in narcissism and arrogance,
wishes to not only defeat his rival by obtaining more military
contracts, but to absolutely destroy his legacy.
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