The Material Blade is not Lloyds best weapon. The best weapon for Lloyd is the Kusanagi Blade. How you get it takes some doing. You must beat the Sword Dancer 3 times. First he appears in the mine at the Ossa Trail with 8,888 HP. He disappears after Lloyd speaks to Colette at the mountaintop of Hima right before going to the Tower of Salvation. Second time is in the Gaoracchia Forest. He has 33,333 HP. He disappears after you defeat Luna and Aska. The third time is in Iselia Forest after the party returns from the Tower of Salvation and Colett's illness is cured. The creature has 99,999 HP, so it has more HP than any other creature in the game. The last time it is defeated, it drops the Kusangagi Blade. It takes some effort, but it's worth it.