Generally they get shredded/hammered or heated, after which components of the batteries are separated. Most of the recovered metals and plastics are then sold as scrap (sometimes to battery manufacturer). Acids get neutralized and disposed of or converted into other chemicals that can be sold. The reclaimed materials don’t necessarily go to battery manufacturers though, but yes, a good portion of them does end up in new batteries – in fact, car batteries contain 60-80% recycled lead and plastic.
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