On July 16, 1988, Tokyo was destroyed by what was believed to be a new type of bomb, triggering World War III. Thirty-one years later, in 2019, Neo-Tokyo has arisen from ashes under Japan's new political system; but the glittering city is built on foundations of poverty, ignorance and despair. Kaneda and his friends, a bunch of juvenile delinquents, rumble with a rival group of bikers. While the police attempt to disperse a riot with tear gas, the rumble continues. Tetsuo takes the lead and, after disposing of his opponents, nearly runs down what looks to be a 100-year-old baby. Tetsuo's bike suddenly explodes and he is taken prisoner by the top-secret Akira Project where he is subjected to a series of tests which unleash his latent psycho-kinetic powers. But he is really more powerful than anyone imagined and breaks out, creating a swathe of destruction across the city as he mutates into another life form.
