The two best picks on the ASX among lithium stocks and rare earth minerals are Lynas Rare Earths and IGO, with demand in the sector to exceed supply for at least the next five years as vehicle makers lock in long-term supply contracts for the electric vehicle transition, the boss of Argo Investments says.

Argo, which has a $6.6 billion portfolio across banks, miners, industrials and healthcare sectors among 90 companies, also has a holding in Liontown, which it regards as having a strong future, and Novonix, a battery materials group.