Nanite Compute Materials were introduced in Unreal Engine 5.4 and can bring significant performance improvements. This article dives into the potential performance benefits of the 1x1 shade binning mode and simple ways to evaluate which shade binning modes are used in your scene.
https://dev.epicgames.com/community/learning/knowledge-base/qBx7/unreal-engine-fortnite-nanite-compute-material-optimizations