During the Cold War shortly after the Soviet Union launches Sputnik 1 in October 1957, an object from space crashes in the ocean just off the coast of Maine, then enters the forest near the town of Rockwell. Nine-year-old Hogarth Hughes investigates and finds a giant robot attempting to eat the transmission lines of an electrical substation. Hogarth eventually befriends the Giant, finding it docile and curious. When it eats railroad tracks in the path of an oncoming train, the train collides with it and derails, and Hogarth leads the Giant away from the scene, discovering that it can self-repair. While there, Hogarth shows the Giant comic books of the adventures of Superman.
The incidents lead a cowardly and paranoid U.S. government agent named Kent Mansley to Rockwell. He suspects Hogarth's involvement after talking with him and his widowed mother, Annie, and rents a room in their house to keep watch on him. Hogarth evades Kent and moves the Giant to a junkyard owned by beatnik artist Dean McCoppin, who reluctantly agrees to keep him. Hogarth enjoys his time with the Giant but is forced to explain "death" after witnessing hunters killing a deer.
When Kent discovers evidence of the giant after finding a photo of it next to Hogarth and brings a U.S. Army contingent led by General Shannon Rogard to the scrapyard to 'prove' the Giant's existence. That was till a spaceship appeared in the sky above them, getting everyone's attention. Followed by a small metal ball coming out from it which fell to the ground and floated in the air in front of the group of humans. A projection of light surrounded the ball before a purple skin woman with purple hair formed out of the light. She is wearing a more form fitting suit showing that she's a female by human standards. And that she has four tentacles coming out of her back.
"Greeting primitives of this planet. I am Twilight Sparkles an alien from another world and I have come to your world to get back my robot that accidentally fell off my ship," the woman greeted the crowd.
"Your robot?" Kent ask.
"Yes this robot," Twilight said as she projected the image of the iron giant. "This is a Iron Sentry model 8238, it's equip with retractable weapons and armor that are fully automatic unleash when any weapon is detected thanks to it's auto defense system. The sentry doesn't even have to be aware of danger for its weapons to be active. And thanks to it's auto repair systems it's able to repair, refuel, and rearm itself from the metal that it eats. Of course seeing how this model hasn't had its programing downloaded into it, the robot is running wild and has no idea how to use any of its equipment. I'm really surrprise that it hasn't done any real damage to this place."
"General Shannon Rogard of the U.S. army. If I understand this, the robot is yours and you come to get it back?" General Rogard ask taking command.
"Yes and its a good thing too as you are all armed and it's auto defense systems will fire at all of you," Twilight said as eyebots came flying down from the ship and surrounded the hanger where the robot is. "My eyebots will turn off it's defense systems so, I can transport it back to my ship."
"You're taking him away?" Hogarth asked.
"It is my robot," Twilight said. "But with that said unless you're willing to buy it. You can't just claim a giant war machine that can think as your own. And I'm guessing you found him first and been keeping him from causing problems."
The Iron Giant steps out from the warehouse with the eyebots flying around him.
"Miss that robot from the reports Kent here has given me," General Rogard said motioning to Kent. "Has cause damage to the town since it landed here."
"And you want me to make it up for the damage my robot caused. I'm a trader so I can offer you level 2 technology," Twilight explains.
"Level 2?" General Rogard asked.
"I would lose my license as a trader if I went around selling and trading advance technology to a primitive race like yours. It's basically don't give the ones who just masted how to make fire a energy weapon. That's just asking for trouble," Twilight said.
"I understand that we might lack the technology and all that, but we're not primitives," Kent said.
"Your country holds itself up as the example for the rest of your species when it cannot even govern itself. Holding the high morel ground while people who aren't the skin color like you, don't have the same rights. A government that covets what does not belong to it, and chases shadows of threats with utterly reckless paranoia. The same goes for your country's counterpart, that is the same in how they do things. I do not think your specie are primitive, I know it," Twilight brutally explains.
"How did you know that?" General Rogard ask.
"Listen to the radio and watch tv. That's how I'm able to understand and talk to you," Twilight said. "Now about the payment for the damages my robot caused which will go to the town and afterwards what your government is going to be trading for what, I'm legally able to trade to you."
"What's going to happen to him?" Hogarth ask pointing to the Iron Giant.
"Going to have to reprogram him and wipe his memory. But seeing how I do need to pay for all the damages it has done. I have an idea of what to do with its personality chip," Twilight said.
!
2 Months Later -
Hogarth rode on his bike down the streets of Rockwell, which has changed since the alien ship appeared in the sky and repaired all the damage the robot caused. The alien woman Twilight had gifted the town with advance solar panels that dotted the roofs of the buildings, and a water purifier that makes dirty water drinkable. At the junkyard Dean got a material recycler that broke down all the trash that town makes into raw materials which he sells to companies who need them.
Then in the new factory built around the last machine Twilight gave the town. Is the fabricator that can make just about anything as long as it's in its programing and the materials needed is there. The town is now taking in garbage from the surrounding towns and cities where it's first sorted then fed into the recycler. Where the materials are either shipped out or be used to made something from the fabricator. For the organic waste, its all sold off for industrial use or for fertilizer.
As for the things that Twilight gave to the government, they're tight lip about it but things have been happening. Once news broke out of how there is life on other worlds, there has been lots of talks between governments around the world. With Twilight addressing the entire world before leaving Earth to return to her world along with her crew who made themselves known. It caused the world leaders to begin talking with each other, seeing how they're not alone, and how Twilight made it clear how other aliens see humans because of how they acted.
But all that didn't matter to Hogarth as he rode into the junkyard.
"Hi Hogarth," Dean said spotting the boy on his bike. He's busy overseeing the workers he hired to help out after his business had expanded.
"Hi, Dean," Hogarth said riding by as he spotted who he's looking for.
Pushing a cart of trash is Giant who's computer brain was downloaded into a smaller 8 foot one, that's design for heavy industrial work. He now works with Dead in the junkyard, and helps keep the machine running. For Hogarth all that matters was that he still has his friend.