Tony Stark, who has inherited the defense contractor Stark Industries from his father Howard Stark, is in war-torn Afghanistan with his friend and military liaison, Lieutenant Colonel James Rhodes, to demonstrate the new "Jericho" missile. After the demonstration, the convoy is ambushed and Stark is critically wounded by a missile used by the attackers: one of his company's own. He is captured and imprisoned in a cave by a terrorist group called the Ten Rings. Yinsen, a fellow captive doctor, implants an electromagnet into Stark's chest to keep the shrapnel shards that wounded him from reaching his heart and killing him. Ten Rings leader Raza offers Stark freedom in exchange for building a Jericho missile for the group, but he and Yinsen know that Raza will not keep his word. Stark and Yinsen secretly build a small, powerful electric generator called an arc reactor to power Stark's electromagnet and a prototype suit of powered armor to aid in their escape. Although they keep the suit hidden almost to completion, the Ten Rings discover their hostages' intentions and attack the workshop. Yinsen sacrifices himself to divert them while the suit fully charges. The armored Stark battles his way out of the cave to find the dying Yinsen, then burns the Ten Rings' weapons in anger and flies away, crashing in the desert and destroying the suit. After being rescued by Rhodes, Stark returns home and announces that his company will cease manufacturing weapons.
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