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The phrase "argued they needed" is correct and usable in written English.
It can be used when discussing a situation where someone is presenting a case or reasoning for a particular requirement or necessity.
Example: "During the meeting, the team argued they needed additional resources to complete the project on time."
Alternatives: "contended they required" or "asserted they needed".
Exact(9)
Only one thing stood in their way, they argued: they needed control of lawmaking in Albany.
They argued they needed a four bedroom property (rather than a three bed) because of their children's requirements.
The high school, one of two in town, was so crowded that students argued they needed traffic lights in the serpentine hallways.
The current weightings are based on 1994 data when psychology and media studies argued they needed more money for science labs or film studios.
Poor developing countries argued they needed the right to pollute in order to catch up to the West in terms of economic development, while the rich nations clucked that the world could ill afford more carbon emissions.
Earlier this year, Nato military commanders had argued they needed as many troops there as possible for as long as possible, but that view has changed in recent months.
Similar(50)
While the companies have often invoked privacy rights to resist government interference with the data and to protect their business, law enforcement authorities have argued they need the data access for security reasons.
Cal State Northridge leaders argued they need a rapid transit line to campus.
If Democrats want to find new relevance in the Donald Trump era, Stoller and others have argued, they need to tackle the issue of corporate mergers. .
You could argue they needed it, after the defection of the Sun – as Napoleon said, "In defeat I need it".
Actually, I could argue they needed to be there.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com