In "Iron Man 2," Tony Stark, the billionaire inventor and superhero, publicly reveals his identity as Iron Man. This attracts the attention of Ivan Vanko, whose father Anton Vanko, a former Stark Industries employee, has just died. Ivan builds a mini arc reactor like Stark's and uses it to create his own suit. Six months later, Stark hosts the Stark Expo in New York City and finds that the palladium core in his reactor is slowly killing him.
After learning that he is going to die, Tony creates a media frenzy by appointing Pepper Potts as CEO of Stark Industries. During a race in Monaco, Vanko attacks Stark with electric whips powered by his Arc - Reactor, but Tony manages to defeat him. Stark's rival, Justin Hammer, fakes Vanko's death and asks him to build a series of armored suits to stand up to Stark.
Nick Fury gives Stark some of his father's old materials, and that's how he discovers a new element to replace the palladium core in his reactor.
At the "Stark Expo" Hammer introduces his new drones and not only that. As a figurehead, he has his own "Iron Man" suit. Vanko, however, who secretly has control over all the suits can thus begin his final hunt for Tony.