Arc reactor
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An arc reactor is a miniature power source developed by Tony Stark.
The design is based on a large reactor built at Stark Industries mostly as a publicity stunt. The original, larger reactor was inefficient, barely producing more power than was required to keep it running.
Stark's miniaturized version is extremely efficient. The device can be held in one hand, but can produce gigawatts of power. At high-output, however, it will use up its fuel in a matter of minutes.
The operating principles of the reactor are not clear, although some kind of cold fusion seems likely.