The episode begins with Sebastian's former student betraying and likely killing him. A young man searching a scrapyard for materials discovers a surprisingly advanced and self-aware iron puppet, which belongs to an alchemy dropout. The dropout refuses the young man's partnership offer to manufacture and sell the puppet, asserting his own black-market connections. The dropout reveals his urgent need for expensive alchemical supplies to continue his independent research. The episode ends with a new character observing them and seeing an opportunity for profit, threatening to disrupt their tense standoff.