Palladium was an element that was used by Tony Stark, in the movie Iron Man 2, to replace the normal miniaturized arc reactor, as the Palladium element contained more power and was able to sustain the energy that was used from it for the Iron Man suits.
The element had a bad side effect, as it was poisonus to Tony, and he often had to replace the palladium core.
In Iron Man, Tony uses Palladium as the main power source to stabilize the Arc Reactor he created as a replacement for his car-battery powered electromagnet attached to his chest.
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