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What type kind of abilitys do you have in mind, i believe a tiered ability system could be plausable.

What type of material, and what would the material be used for?

What kinds of upgrades? Perhaps you could upgrade parts of your raft to increase health. Possibly to increase boyouncy in the future (hint,hint)

(+3)

You could go for a type of smeltery, where u can smelt scrap into metal ingot and u need like 10 scrap for 1 ingot or some stuff, then you can improve your raft with metal reinforced planks with like 250 health, but u need planks and scrap to repair it. Sometimes its bit unrealistic you dont have to fire up the cook station or the water supply. I had much fun til now playing this game, keep up the good work, thank you so much for your thousands hours of time!!

(+2)

something like Skyrim where as you level up you could craft better things