Upgrading
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There are 3 levels to your base. You start with wood, then you can upgrade to Stone, before finishing with Metal.
The first level is wood. This is made by chopping trees with an axe and crafting your base building pieces. All metal and stone pieces are upgrades to the wood.
The second level is stone. You can upgrade your wooden base to stone by using 20 stone PER PIECE you upgrade. You can get stone by using a pick axe and hitting rocks around the map or in the mines.
The Third level is metal. You can upgrade each Stone piece by using 20 metal scrap. Simply right click and choose the upgrade option on the far right.