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Just keep using it and when it reaches max level, take it out and equip a copy. You can max level faster in the end game areas. Find areas where you can max them all before moving on to the final area. There is no turning back in the final area.
Just equipping the materia is enough, you don't have to actively use it in battle for it to earn AP.
Each battle yields a certain amount of AP, seen on the same menu page that shows how much EXP your characters gain, only to the Right side of the EXP after a battle in the menu where it also tells you how much gil you earned for that battle.
AP is only garnished for characters who were in that battle in particular, for the materia that is equipped to them.
So if you have Cloud, Tifa and Aerith, and they all have materia, they all gain AP from a battle, but if Cid has materia on him, well he wasn't in the battle, so he gets no EXP or AP.
Certain Weapons and Armor have different kinds of AP Growth, most say Normal, but some say Double or Triple or Nothing. This of course, explains how AP is treated for the materia equipped on those Weapons and Armor. So if you earn 15 AP, but the piece of Armor or the Weapon you are using has Double growth (which can be seen on the Equip menu) than you would gain 30 AP per the materia equipped in those slots for that weapon or armor.
The same is also true for Triple and Nothing accordingly.