I would guess that you have an event-handler that isn't happy. What exactly does the message say?
You might also be having problems if you are adding the same Material instance to the list multiple times; since IndexOf will only find the first occurrence. This line makes me very suspicious:
mater.Add((Material)cmbMaterial.SelectedValue);
since it could potentially (on consecutive clicks / etc) do exactly this.
Note: if you used BindingList<T> instead all you'd have to doo is Add(...) - no resetting required:
field:
BindingList<Material> mater = new BindingList<Material>();
init grid:
dgvMaterial.DataSource = mater;
add item:
mater.Add(newInstance);