what tool for cutting a circlip groove??

MTVOR tool holders use a TNMC style insert. These can be purchased either with a threading tip (most common) or a range of square grooves, o ring grooves, and some other oddities. They are fairly strong since they are on-edge and have 3 cutting surfaces per insert.



A ground HSS tool would be good for a one-off or few-off, but this is more realistic for larger runs since you won't need to adjust the tool position for sharpening.
 
yes if things go well i expect to be making a few hundred of these ... will have to try some different solutions out
Try this, it may work. Slitting saw blades for metal are HSS, available in very thin thickness , tooth count and diameter. Assume something like a 2 inch dia blade. Mount it on some type of toolholder with a single bolt, with teeth pointing up. Feed into work with blade exactly at 90 deg. to work. If the blade has too many teeth, grind off every other tooth for clearance. Blade can be rotated to set cutting angle.
 
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