We propose and analyze a scheme to entangle the collective spin states of two spatially separated bimodal Bose-Einstein condensates. Using a four-mode approximation for the atomic field, we show that elastic collisions in a state-dependent potential simultaneously create spin-squeezing in each condensate and entangle the collective spins of the two condensates. We investigate mostly analytically the non-local quantum correlations that arise in this system at short times and show that Einstein-Podolsky-Rosen (EPR) entanglement is generated between the condensates. At long times we point out macroscopic entangled states and explain their structure. The scheme can be implemented with condensates in state-dependent microwave potentials on an atom chip.
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