Localization is actually the common term, frequently used in robotics and autonomous vehicles. There's a really interesting field of research here [0].
[0] - https://en.wikipedia.org/wiki/Simultaneous_localization_and_...
[0] - https://en.wikipedia.org/wiki/Simultaneous_localization_and_...
Edit to add: But I can see how in a specialized field, where methods for locating an object are frequently discussed, using localization over location would be useful for describing the process of finding something, since location is also a noun referring to the place itself.