An exemplary method that forms spacer stacks with metallic compound layers is disclosed. The method includes forming magnetic tunnel junction (MTJ) structures on an interconnect layer and depositing a first spacer layer over the MTJ structures and the interconnect layer. The method also includes disposing a second spacer layer—which includes a metallic compound—over the first spacer material, the MTJ structures, and the interconnect layer so that the second spacer layer is thinner than the first spacer layer. The method further includes depositing a third spacer layer over the second spacer layer and between the MTJ structures. The third spacer is thicker than the second spacer.