diff --git a/.circleci/config.yml b/.circleci/config.yml
index 92dbec87dc..28bb6c3890 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -29,7 +29,7 @@ var_4_win: &cache_key_win_fallback v5-angular-win-node-12.0-
 
 # Cache key for the Material unit tests job. **Note** when updating the SHA in the cache keys,
 # also update the SHA for the "MATERIAL_REPO_COMMIT" environment variable.
-var_5: &material_unit_tests_cache_key v5-angular-material-a5cad10cf9ca5db84c307d38d5594c3f1d89ae2b
+var_5: &material_unit_tests_cache_key v5-angular-material-c1d898661b6055c67090f0cb8b7727b6335733b8
 var_6: &material_unit_tests_cache_key_fallback v5-angular-material-
 
 # Workspace initially persisted by the `setup` job, and then enhanced by `build-npm-packages` and
diff --git a/.circleci/env.sh b/.circleci/env.sh
index 70ebc8ec0d..ef161d0245 100755
--- a/.circleci/env.sh
+++ b/.circleci/env.sh
@@ -76,7 +76,7 @@ setPublicVar MATERIAL_REPO_TMP_DIR "/tmp/material2"
 setPublicVar MATERIAL_REPO_URL "https://github.com/angular/material2.git"
 setPublicVar MATERIAL_REPO_BRANCH "master"
 # **NOTE**: When updating the commit SHA, also update the cache key in the CircleCI "config.yml".
-setPublicVar MATERIAL_REPO_COMMIT "a5cad10cf9ca5db84c307d38d5594c3f1d89ae2b"
+setPublicVar MATERIAL_REPO_COMMIT "c1d898661b6055c67090f0cb8b7727b6335733b8"
 
 # Source `$BASH_ENV` to make the variables available immediately.
 source $BASH_ENV;
diff --git a/scripts/ci/run_angular_material_unit_tests.sh b/scripts/ci/run_angular_material_unit_tests.sh
index ae116f885e..2be584a55d 100755
--- a/scripts/ci/run_angular_material_unit_tests.sh
+++ b/scripts/ci/run_angular_material_unit_tests.sh
@@ -22,4 +22,4 @@ cp ${angular_dir}/tools/material-ci/test-blocklist.ts ${MATERIAL_REPO_TMP_DIR}/t
 
 # Now actually run the tests. The dev-app and all its subpackages are excluded as they fail
 # to compile due to limitations in Ivy's type checker (see FW-1352 and FW-1433)
-bazel test --build_tag_filters=-docs-package,-e2e,-browser:firefox-local --test_tag_filters=-e2e,-browser:firefox-local --define=compile=aot -- src/... -src/dev-app/...
+bazel test --build_tag_filters=-docs-package,-e2e,-browser:firefox-local --test_tag_filters=-e2e,-browser:firefox-local --config=ivy -- src/... -src/dev-app/...