They are both correct, but the meaning is slightly different. In both cases, 'always' means something like 'from when she was very young', but the time frame is different.
"She has always wanted to be a teacher", and the contracted form 'She's always wanted to be a teacher" are examples of the present perfect, and they tell us something about the PRESENT situation. 'She has always wanted..' describes a continuing situation. She still wants to be a teacher now.
"She always wanted to be a teacher" is past simple, and it describes a PAST situation. Perhaps, as Joseph suggested, it might mean that she died young, before she could achieve her ambition.
Or it could mean that she now does a different job - perhaps she wanted to be a teacher, was forced to go into another profession for some reason, and then gave up her dream of being a teacher.
Or it could even mean that she actually did become a teacher. If you interpret 'She wanted to be a teacher' as 'She dreamt of being a teacher', we use this phrase to describe the situation before she realised her ambitions. The state of 'wanting' - in the sense of hope and ambition - finishes when you actually achieve your dreams. For example, 'She always wanted to be a teacher, and the day that she graduated from training college was the happiest day of her life.'