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Mental Energy is one of the primary character statistics in ELEX. It would appear that during game planning, this was meant to be separate from "Mana", but in the released version of the game, the two are the same. When Jax's mental energy (or mana level) falls to zero, he cannot cast spells or use PSI abilities.
Maximum Mental Energy (or Mana) can be permanently increased with a Mana Elixir.