Stark competes in the Monaco Historic Grand Prix, where he is attacked in the middle of the race by Vanko, who wields electrified whips. Stark dons his armor and defeats Vanko, but the suit is severely damaged.
Stark's best friend, U.S. Air Force Lieutenant Colonel James Rhodes, dons Stark's prototype armor and tries to restrain him. The fight ends in a stalemate, and Rhodes confiscates the armor for the U.S. Air Force.
Nick Fury, director of S.H.I.E.L.D., approaches Stark, revealing that "Rushman" is agent Natasha Romanoff and that Howard Stark was the S.H.I.E.L.D.
With the aid of his A.I., J.A.R.V.I.S., Stark synthesizes it. When he learns that Vanko is still alive, he places the new element in his arc reactor and ends his palladium dependency.