How he expresses what he is thinking is difficult to follow, but he seems to be thinking correctly - at least mostly correctly. The stated result of 1.45% Lithium is correct.
Try to follow this: Assume 100 grams of alloy, use m1 for mass of lithium and m2 for mass of aluminum. For this 100 grams, continuing with d for density, and v for volume, we can say that the volume of this 100 gram of alloy is
(m1/d1 + m2/d2)
We know the given density of the alloy of 2.55 grams/cubic centimeter, so we can say
(m1 + m2)/(m1/d1 + m2/d2) = 2.55
The other equation which we can use is for the assumed arbitrary 100 g. sample,
100 = m1 + m2
Those are the two equations in two unknowns. The rest is simple properties of equality for Real numbers; a few tedious but easy algebra steps. We could find two equivalent expressions for m2 from each equation, equate those expressions, and then find the resulting formula for m1. We will find the value which KMjuniormint5 did, 1.45%.