Abstract: A coolant supply and recycle system and method for cleaning used machine tool coolant and returning it to the machine tools for reuse. A tank receives used coolant containing metal chips from one or more machine tools. A pump is in communication with the tank, and is operative to extract used coolant from the tank into an inlet portion of the pump. Within the inlet, the pump includes an inducer-chopper operative to prime the pump and to chop the metal chips to effect a reduction in their size prior to discharging the used coolant from the pump. An impeller is recessed in the pump above the inducer-chopper to create a vortex of the used coolant and sized-reduced metal chips and force them from the pump discharge. The pump discharge portion is connected to a filter for removing the metal chips and supplying the clean coolant back to the machine tools.