The way I think the Lore will work is
1. Items are crafted with crystals which leave a latent energy in the item.
2. As you use the item it absorbs energy from you and the monsters you fight, or from items you craft.
3. When the item is filled with as much energy as it can hold it becomes Catalytic.
4. You can then convert it into Materia with the Materia Catalyst.



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