In the Spectral Nod Gravity (SNG) framework, spacetime emerges from Planck-scale nod networks, while the origin and formation of matter arise as a natural extension of this geometric structure. This paper details the matter formation mechanism in the Spectral Universe Model. In high-density nod regions, nod networks condense to form atomic-like bound states. This process is regulated by the four operators \( \fleq, \cyceq, \nexteq, \reveq \) and is completed through the Cosmic Grinder mechanism, where black holes transform matter into spectral layers. Black holes function not as destroyers but as transformers: at the end of the process, they output the raw material of gas and dust clouds that form planets and stars. This framework interprets matter as "crystallized" spacetime phases; the electron requirements of unstable elements are explained as connectivity gaps filled by the phase nexter operator \( \nexteq \). The paper presents predictions consistent with JWST high-redshift observations and proposes a unified cosmic cycle model connecting matter formation with spacetime emergence.