Materia is used for each meld (75 successful melds required for upgrade). Regardless of materia stats, you will gain only one point for each meld. If the melding fails, the materia is likely lost but you will keep the alexandrite catalyst. The materia tier required rises the further you progress in a particular stat.o

Melding

Melding can fail. The chance of success is given before attempt. It starts with a 100% success rate that drops as you progress higher in a particular stat. When a higher tier materia is required, the success rate returns to 100% and falls similarly to the last tier. You do not need crafting skills to meld. You will keep your alexandrite in a failed meld but likely lose your materia.

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Source: http://www.reddit.com/r/ffxiv/comments/27dg9g/sphere_scroll_materia_melding_determines_the/

Source: http://www.reddit.com/r/ffxiv/comments/27drfz/novus_upgrade_requirements_and_methods/

Source: http://www.mmogah.com/news_info.asp?id=169