RFID tool detection

I am currently working on my graduation project for school. In this project, I want to detect the presence of objects using RFID. What I’m wondering is: does it still work when the RFID tags are placed inside a steel cabinet? Have some of you done any research on this or heard of similar experiences?

My main questions are:

Should the tags, the reader, and the antenna all be placed inside the cabinet?

Do you have any experience with this type of application?

And what if I want to apply this in a larger space? Could I use one reader with a better antenna, or would it be better to divide the area into zones and assign a separate reader to each zone?

If they’re all inside the steel cabinet it’d work, but otherwise steel would block the RFID signal

An M7e with this antenna is our go-to for long-range applications (up to 16ft) - so consider that for any large-room use-cases