I've already spent an hour running around the Cosmodrome, a place I currently have no reason -- aside from this quest -- to be wasting time at. I've gathered easily 50 spinmetal so far and haven't gotten any drops of the 'rare material' I need. There really isn't any reason the drop rate should be this low. This isn't good/fun game design, it's tedious false difficulty meant to take up time. I get that you don't want it to be easy for players to get a better sword, but there is no skill involved in forcing us to waste hours gathering resources. I've seen posts elsewhere where it's taken players up to 10 hours to get everything, and that's ridiculous.
Plus, 500 ability kills, that's a little much, don't you think? (Clever trying to hide it behind a percentage, though.)
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You can only get the rare material from resource nodes, not from chests. As for ability kills, this will depend on your class. For example, if you are a Titan and got a void sword, you have no offensive super as a defender to use for ability kills. But you can use things like montecarlo and armamentarium to boost your grenade/melee charges for the farm. Any mission where you can get a group of hive thrall running at you is a great farm option for group grenade clear out