We demonstrate the existence of the giant proximity magnetoresistance (PMR) effect in a graphene spin valve where spin polarization is induced by a nearby magnetic insulator. PMR calculations were performed for yttrium iron garnet (YIG), cobalt ferrite (CFO), and two europium chalcogenides EuO and EuS. We find significant PMR (up to 100%) values defined as a relative change of graphene conductance with respect to parallel and antiparallel alignment of two proximity-induced magnetic regions within graphene. Namely, for high Curie temperature (${T}_{C}$) CFO and YIG insulators, which are particularly important for applications, we obtain 22% and 77% at room temperature, respectively. For low ${T}_{C}$ chalcogenides, EuO and EuS, the PMR is 100% in both cases. Furthermore, the PMR is robust with respect to system dimensions and edge-type termination, and it even maintains significant values (around 50% for YIG) in the presence of considerable spin-orbit coupling strength. Our findings show that it is possible to induce spin-polarized currents in graphene with no direct injection through magnetic materials.
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