If you think recycling the casing and a few metal components are "recycling" then yeah, they are doing it. In order to make these batteries function again, you must completely gut the old and in with the new. The most "harmful" and environmentally unfriendly parts are still dumped.
It depends which batteries you are talking about and what you consider "the most 'harmful' and environmentally unfriendly parts". Battery technology is improving. Hybrid and electric car batteries are typically nickel-metal and lithium-ion based and while they are not totally benign, they are less dangerous than lead.
There are theories out there that "fossil" fuel is actually abiotic and is a naturally occurring by-product of inner earth.
There are theories that man didn't evolve too. There are theories that 911 was an inside job. There are many theories.
I don't believe that fossil fuel is abiotic. What I do believe is the price of oil justifies using more expensive techniques to extract it from hard to get at places. And that the amount of oil available in such places is ginormous.