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Emerging technology innovation and industrial development are increasingly dependent on the use of advanced and specialized materials. This paper introduces the concept of material-based technological regime and underscores the critical importance of supply chain stability for key materials in bolstering technology and industry development. We focus on the case of renewable energy (RE) industry which depends on selected critical raw materials (CRMs) – including rare metals and rare earth elements – as essential components and the material basis for RE technological innovation. A growing emphasis in both academic and policy circles is directed to de-risking supply chains through diversification of sources and production reshoring. In this study, we investigate the relevance of domestic CRM production as a strategic tool to hedge against global supply shocks, providing competitive advantages for local renewable energy development and innovation. Empirically, we explore this issue by focusing on two core RE sectors: Wind and Solar. Analysing data from a panel of 128 countries spanning from 2007 to 2016, we examine the impact of domestic CRM supply capabilities on the competitiveness of the RE sectors and technological innovation. Our findings show that a stable CRM supply through domestic production significantly supports downstream RE product exports and patent output, shielding local RE development from global material supply shocks.