A method for fabricating a magnetic element for use in a magnetic device including a contact electrically coupled to the magnetic element, the method comprising:
- providing a pinned layer;
- providing a nonmagnetic spacer layer;
- providing a free layer having an out-of-plane demagnetization energy and a perpendicular magnetic anisotropy corresponding to a perpendicular anisotropy energy, the nonmagnetic spacer layer residing between the pinned layer and the free layer;
- and
- providing a perpendicular capping layer adjoining the free layer and the contact, the perpendicular capping layer inducing at least a portion of the perpendicular magnetic anisotropy in the free layer;
- wherein the magnetic element is configured to allow the free layer to be switched between a plurality of stable magnetic states when a write current is passed through the magnetic element.