[2][4] Nickelblödite was discovered in nickel mines in Carr Boyd Rocks and Kambalda, Western Australia.

[3] Minerals associating with nickelblödite include violarite, morenosite, halite, pyrite, and siderite.

It is usually found in the form of flat crystals, up to 150 microns, with soft shapes probably rounded by the solution, and in efflorescence.

This mineral has been identified from specimens collected in two different locations in Western Australia: the Kambalda nickel mine in Coolgardie, and the Carr Boyd Rocks nickel mine in Menzies.

It has only been described in two other places around the world: the sulfate deposit of Sohland an der Spree, in Upper Lusatia,Germany and the Km-3 mine in Lavrio,Greece.