Plot:
After the passing of his father, Anton
Vanko, Ivan Vanko discovers that the Arc reactor technology that
resulted in the success of Stark Industries was partially due to his
father. He finds an old blueprint of an Arc reactor and successfully
miniaturises it.
Although Tony ends up managing to defeat Ivan Vanko, in a cell, Ivan reveals he only intended to prove that Tony could be beaten - this would show he is not invincible as Iron Man and encourage others to turn against Tony Stark. Impressed by Ivan's actions and jealous of Tony Stark, Justin Hammer helps fake Ivan's death and encourages him to build a line of armoured suits to upstage Stark.At his birthday party, that he believes to be his last, Tony Stark ends up getting very drunk while wearing the suit resulting in James Rhodes putting on the Mark II armour trying to restrain him. The fight ends in a stalemate as the two use repulsors against each other resulting in an explosion. Rhodey leaves and takes the armour to the U.S. Air Force but is reluctant to let others have access it, choosing to upgrade it himself with tech from Justin Hammer. Nick Fury meets with Stark and reveals that Natalie Rushman is actually Natasha Romanoff, also known as the S.H.I.E.L.D agent Black Widow. He also reveals that Howard Stark was one of the founders of S.H.I.E.L.D. and someone Nick Fury knew personally. Fury reveals that Vanko's father, Anton, worked together with Howard to develop the Arc reactor, but Anton tried to sell it and Stark had him deported. After failing to sell the Arc reactor to the Soviets, Anton was sent to the Gulag. Fury gives Stark some of his fathers old materials prompting Tony to look through his fathers stuff, discovering a hidden message in the diorama of the 1974 Stark Expo - which appears to be a diagram of the atomic structure of a new element. Seeing his father in a new light, Tony ends up working with his A.I. Jarvis to replicate the new element using it to replace his arc reactor. He also learns that Ivan Vanko is still alive and heads to the Stark Expo believing that he'll make an appearance. Justin Hammer reveals a bunch of armoured drones for varying military purposes along with James Rhodes wearing a new weaponised version of the prototype suit as War Machine. Ivan, partially to get revenge on Tony, partially to get revenge on Justin Hammer for threatening and using him, causes the drones and War Machine to attack Stark. Teaming up with War Machine, Iron Man defeats the drones however Whiplash appears in a new upgraded suit. He is quickly defeated by Iron Man and War Machine using the repulsor explosion to injure him, resulting in him self-destructing all the drones and his own suit, killing him.Tony manages to save Pepper from the drones and reveals the truth, finally kissing Pepper Potts. In a debriefing with Nick Fury, it is revealed that they only intend to use Tony as a consultant, tying into 'The Consultant'. Tony Stark and James Rhodes recieve medals for heroism while Justin Hammer is arrested. In a post-credit scene, Agent Phil Coulson reports to a scene where a Hammer has been found in a crater in New Mexico, teasing Thor.
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