You must be aware that metal and RFID don't gel along and in order to bring them closer researchers at the Fraunhofer Institute for Microelectronic Circuits and Systems IMS in Duisburg took the challenge to integrate RFID chips in metal tools. Here the data carriers convey information to reading device which is located outside metal spindle holding adapter and tool.

This is what Dr. Gerd vom Bögel, IMS group manager had to say:

We have now split up the transmission path. From the RFID chip, which is located inside the adapter, the data are first transmitted via a cable to the interface between the adapter and the spindle. From here, they are forwarded wirelessly to the spindle by two antenna coils, one of which is in the insertion module, the other in the spindle. The interface between the rotating spindle and the stationary part of the measuring device is also bridged wirelessly.

RFID is in the same situation with metal as is the case with cell phones used inside reinforced concrete houses and the transmission principle being applied here ensures that RFID does not face any problems in presence of metals. The good thing is that it's already being tested by selected customers. I feel this is one of the biggest glitch being faced by RFID at the moment and if it's overcome then there would be no looking back for the technology in days to come.